Energy efficiency in China : technical and sectoral analysis

23801 Revised ENERGY EFFICIENCY IN CHINA: TECHNICAL AND SECTORAL ANALYSIS Report of a Joint Chinese-International Study Team Editors Barry G. Tunnah, Consultant, The World Bank Wang Shumao, Energy Research Institute, China State Planning Commission Liu Feng, Consultant, The World Bank Report prepared for a Chinese Government/UNDP/World Bank study, China: Issues and Options in Greenhouse Gas Emissions Control October 1994 FI LE C Y Foreword This report is one of eleven subreports prepared as inputs to the United Nations Development Programme (UNDP) technical assistance study, "China: Issues and Options in Greenhouse Gas Emissions Control," supported by the Global Environment Facility and executed by the Industry and Energy Division, China and Mongolia Deparment, of the World Bank. The views and opinions expressed in this report are those of the authors and do not necessarily represent the views of the World Bank. Research for this subreport was managed by the Chinese State Planning Commission (SPC). International experts visited China during three major missions in April/May 1992, October/November 1992, and June/July 1993. The report was edited by Barry G. Tunnah, together with Wang Shumao and Liu Feng. The following international and Chinese experts participated in the project preparing background sector reports, reviewing major trends, and selecting key energy efficiency projects for case study analysis (see subreport Energy Efficiiency in China: Case Studies and Economic Analysis). International Experts Barry G. Tunnah, Senior Engineer and Energy Efficiency Specialist, Consultant, The World Bank Paul Hayman, Senior Engineer, WS Atkins Inc., United Kingdom G. Srinivasan, Senior Consultant, WS Atkins Inc., United Kingdom Michael Bradford, ERA Technology, United Kingdom Karl-Gustav Lauren, Lauren Consulting, Finland Kari Sarkkinen, Jaakko Poyry-International, Finland Jayant Sathaye, Energy Efficiency Specialist, Lawrence Berkeley Laboratory, U.S.A. Robert M. Wirtshafter, Energy Efficiency Specialist, University of Pennsylvania, U.S.A. Robert P. Taylor, Senior Energy Economist, The World Bank Todd M. Johnson, Environmental Economist, The World Bank Chinese Experts State Planning Commission Shen Longhai, Director, Department of Spacial Planning and Regional Economy Zhu Liangdong, Advisor and Senior Engineer Zhou Changyi, Division Chief, Department of Raw Materials Industry Kong Fanzhu, Division Chief Xu Ningnan, Engineer Zhou Fengqi, Director, Energy Research Institute (ERI) Wang Shumao, Division Chief, ERI Dai Yande, Deputy Division Chief, ERI Li Youhui, Associate Professor, ERI Lin Zhiping, Associate Professor, ERI Liu Jingru, Engineer, ERI Ministry of Metallurgy Industry Xu Zhiqiang, Division Chief, Engineer, Energy Conservation Division, Production Department. Zeng Wu, Engineer, Energy Conservation Division , Production Department Jiang Hanhua, Senior Engineer, Anshan Thermal Energy Research Institute State Administration of Building Materials Chen Min, Division Chief, Senior Engineer, Energy Division Zheng Ziyu, Senior Engineer, Energy Division Han Hong, Engineer, Energy Division Ministry of Chemical Industry Zhang Jintong, Deputy Division Chief, Senior Engineer, Energy Saving Division Zhang Yuming, Senior Engineer, Chemical Fertilizer Department Liu Fangbing, Engineer, Chemical Industry Department China National Nonferrous Metals Industry Corporation Song Shanming, Senior Engineer, Enterprise Bureau Ying Dehong, Senior Engineer, Enterprise Bureau Li Jionghe, Senior Engineer, Equipment Company Aluminum Industry Corporation Li Yuhon& Deputy Division Chief, Senior Engineer, Production Technical Energy Division Zhang Weihai, Engineer, Alumina Plant Ministry of Electric Power Chen Yuji, Deputy Chief, Senior Engineer, Safety Supervision and Production Department Wang Aijuan, Engineer, Safety Supervision and Production Department Lu Shuxia, Senior Engineer, Production Technical Division, Electric Power Bureau of Jiangsu Province Ye Anliang, Senior Engineer, Zhenghai Electric Power Plant of Jiangsu Province Ministry of Coal Hong Shaohe, Deputy Director, Senior Engineer, Comprehensive Utilization and Diversified Management Department Chen Shiming, Associate Chief Engineer, Production Department Hu Lingshi, Senior Engineer, Coal Comprehensive Utilization and Energy Savings Company Li Ping, Engineer, Comprehensive Utilization and Diversified Management Department Ji Maizheng, Associate Professor, Management Institute Ministry of Machinergy Industry Zhou Likun, Engineer, Science and Technology Department Yang Yuwu, Engineer, Science and Technology Department Peng Youyuan, Deputy Director, Senior Engineer, Shanghai Electric Apparatus Research Institute Zhang Jinlan, Senior Engineer, Shanghai Electric Apparatus Research Institute Textile Industry Bi Guodian, Director, Technical Information Research Institute, China General Society Xing Huilu, Senior Engineer, Economic Trading Division, China General Society Jin Weiyan, Senior Engineer, Science and Technology Commission, China General Society Fang Kaijun, Deputy Director, Yangzhou Dyeing and Printing Plant Zhao Wenkang, Engineer, Yangzhou Dyeing and Printing Plant Xue Kaiquan, Enginecer, Yangzhou Dyeing and Printing Plant Light Industry Jiang Manxia, Manager, Senior Engineer, Technical Division of China Papermaking Industry Su Jin, Deputy Division Chief, Senior Engineer, Economic Trading Division of China General Society Chen Xiangiing, Senior Engineer, China Papermaking Industry Development Corporation. Chen Zhongxin, Associate Chief Engineer, Designing Institute of China General Society Transportation Zhang Xiaoli, Engineer, Law & Regulation Department of Railway Ministry Chen Baoliang, Division Chief, Engineer, Energy Division of Transportation & Communication Ministry He Jinshu, Division Chief, Senior Engineer, Energy Division of Transportation & Communic.Ministry Xiong Wei, Engineer, Energy Division of Transportation & Communication Ministry Huang Wanqing, Engineer, Energy Division of Transportation & Communication Ministry Li Jiaben, Chief Editor, Senior Engineer, People' s Transportation & Communication Publishing House Ministry of Agriculture Hao Xianrong, Engineer, Environmental Protection & Energy Department Li Jinming, Engineer, Environmental Protection & Energy Department Other Zhang Li, Engineer, Energy Savings Center of Steam Pipeline Network, China National Petrochemical and General Machinery Engineering Company Li Enshan, Engineer, City Construction Research Institute of China Construction Ministry Li Xianrui, Senior Engineer, China Science & Construction Research Institute Sun Hongzheng, Professor, Economic Management Institute of Zhejiang Province CURRENCY EQUIVALENTS Official exchange rates: Currency = RMB Currency Unit = Yuan (Y) 1980: $1 = Y 1.5 1990: $1 = Y 4.7 1992: $1 = Y 5.5 WEIGHTS AND MEASURES gCE = 10 TCE kgCE = 1CP TCE MTCW = 10 TCE MW = 1C kW TWh = 10'kWh kcal = 4.19 kilojoules TCE = 7 x 10 kilocalories ton standard coal = 0.7143 TCE, average TOE = 1.43 TCE ABBREVIATIONS AND ACRONYMS BOF - Basic oxygen furnace CO2 - Carbon dioxide IRR - Internal rate of return kGCE - Kilogram coal equivalent kj - Kilojoule kW - Kilowatt kWh - Kilowatt-hour m - meter m2 - Cubic meters MTCE - Million tons coal equivalent MW - Megawatt NH3 - Ammonia NOx - Oxides of nitrogen SO2 - Sulfur dioxide SPC - State Planning Commission t - metric ton TCE - Ton coal equivalent TOE - Ton oil equivalent tpy - tons per year tsc - Ton standard coal TSP - Total suspended particulates TVE - Township and village enterprise TWh - Terawatt-hour CONTENTS Summary and Recommendations .............................. ix 1 Introduction ....................................... 1 A. Background to theStudy ............................. 1 B. M ethodology .................................... 1 C . D ata ......................................... 3 2 Overview of EnergyEfficiency ........................... 4 A. Energy Management and Conservation .................... 4 B. Energy Efficiency Improvement in Specific Sectors ............. 4 C. Actions to Promote Energy Efficiency ..................... 8 3 Industrial Sector .................................... 11 A. IronandSteel .................................... 11 Industry Profile and Products ........................ 11 Energy Use ................................... 12 Specific Energy Consumption ........................ 16 Energy EfficiencyTrends .......................... 17 Potential for Improvement .......................... 22 Projected Industry Outputs and Energy Consumption ......... 24 Generic InvestmentOptions ......................... 25 Projected Impacts on Energy and Emissions ............... 30 Emissions .................................... 30 B. Nonferrous Metals ................................. 32 Industry Profile and Products ........................ 32 Energy Use ................................... 35 Energy Efficiency ............................... 37 Energy EfficiencyTrends .......................... 39 Potential for Improvement.......................... 42 Projected Industry Outputs and Energy Consumption ......... 43 Generic InvestmentOptions ......................... 45 Projected Impacts on Energy and Emissions . . . . . . . . . . . . . . . 46 Emissions .................................... 46 - ii - C. Building M aterials ................................. 48 Industry Profile and Products ........................ 48 Energy Use ................................... 52 Specific Energy Consumption........................ 53 Energy EfficiencyTrends .......................... 55 Potential for Improvement.......................... 57 Projected Industry Outputs and Energy Consumption . . . . . . . . . 61 Generic InvestmentOptions ......................... 61 Projected Impacts on Energy and Emissions . . . . . . . . . . . . . . . 64 Emissions .................................... 64 D . Paper ......................................... 66 Industry Profile ................................ 66 Energy Use ................................... 67 Specific Energy Consumption........................ 71 Energy Efficiency Trends .......................... 72 Potential for Improvement .......................... 74 Projected Industry Outputs and Energy Consumption . . . . . . . . . 75 Generic InvestmentOptions ........................ 75 Projected Impacts on Energy and Emissions . . . . . . . . . . . . . . . 78 Emissions ..................................... 78 E. Textiles ....................................... 79 Industry Profile and Products ........................ 79 EnergyUse ................................... 82 Specific Energy Consumption ........................ 84 Energy EfficiencyTrends .......................... 84 Potential for Improvements ......................... 87 Projected Industry Outputs and Energy Consumption . . . . . . . . . 88 Generic InvestmentOptions ......................... 89 Impacts on Energy and Emissions . . . . . . . . . . . . . . . . . . . . . 91 Emissions .................................... 91 F. Chemicals ......... ........... ........ ..... 92 Industry Profile and Products ........................ 92 Energy Use ................................... 98 Energy Efficiency .............................. . 107 Energy EfficiencyTrends .......................... 107 Potential for Improvement.......................... 109 Projected Industry Outputs and Energy Consumption . . . . . . . . . 110 Generic InvestmentOptions ......................... 110 Projected Impacts on Energy and Emissions . . . . . . . . . . . . . . . 113 Emissions .................................... 113 G. Petrochemicals ................................... 114 Industry Profile and Products ........................ 114 Energy Use ................................... 117 Energy Efficiency and Trends ....................... 119 Potential for Improvement .......................... 124 Projected Industry Outputs and Energy Consumption . . . . . . . . . 128 Emissions .................................... 129 - iii - H . Equipment...................................... 130 Introduction to the Equipment Supply Industry . . . . . . . . . . . . . 130 Electric M otors ................................ 131 Fans ....................................... 135 Pumps ...................................... 139 Compressors .................................. 140 Industrial Furnaces .............................. 142 Steam Systems andTraps .......................... 144 Boilers ...................................... 145 Potential for Improvements ......................... 148 Generic Investment Options . . . . . . . . . . . . . . . . . . . . . . . . . 148 Projected Impacts on Energy and Emissions ............... 152 Emissions .................................... 153 4 Coal M ining Industry ................................. 154 A. Industry Profile and Products .......................... 154 B. Energy Use .................................... . 155 C. Energy Efficiency ................................. 155 D. Energy EfficiencyMeasures ........................... 157 E. Potential for Improvement ............................ 158 F. The EnvironmentalSituation........................... 159 5 Power Sector ...................................... 161 A. SectorProfile .................................... 161 B. Energy Use ..................................... 164 C. EnergyEfficiency ................................. 165 D. Energy EfficiencyTrends ............................ 165 E. Potential for Improvement ............................ 166 Generating PlantMix ............................. 166 Reduction of Line Losses ........................... 168 Electricity Generation ............................ 169 F. Projected Outputs ................................. 172 6 Agriculture ........................................ 173 A. SectorProfile .................................... 173 B. Energy Use ..................................... 173 C. Energy Efficiency ................................. 175 D. Potential for Improvement ............................ 176 E. Energy Use and EfficiencyTrends ....................... 177 - iv - 7 TransportationSector ................................. 178 A . Rail .......................................... 178 Subsector Characteristics........................... 178 Energy Use ................................... 180 Energy Efficiency ............................... 181 Energy Efficiency Trends ......................... . 181 Potential for Improvement.......................... 183 B. Highway Transportation ............................. 183 Subsector Characteristics........................... 183 EnergyUse ................................... 186 Energy Efficiency ............................... 186 Potential for Improvement.......................... 189 Energy Use and EfficiencyTrends..................... 190 C. Water Transportation ............................... 191 Subsector Characteristics........................... 191 Energy Use ................................... 196 Energy Efficiency ............................... 197 Energy Efficiency Trends .......................... 199 Potential for Improvement .......................... 200 Projected Activity and Energy Use .................... 200 8 Energy Use in Buildings ............................... 202 A. Residential Sector ......................... ...... . 202 Sector Profile ................................. 202 Energy Use ................................... 205 Energy Efficiency ............................... 207 Potential for Improvement......................... . 211 Energy Use and Efficiency Trends . . . . . . . . . . . . . . . . . . . . . 212 B. Commercial Buildings .............................. 213 SectorProfile ................................. 213 Energy Use ................................... 213 Energy Efficiency ............................... 214 Potential for Improvement .......................... 215 Energy Use and Efficiency Trends . . . . . . . . . . . . . . . . . . . . . 215 Annex A: Case Study Analyses: Forecasted Applications and Impacts on Energy Use and Emissions ....................... 216 -v- TABLES IN TEXT 3.1: Types of Enterprise and Product Output, 1990 ............... 12 3.2: Basic Statistics of Key Iron and Steel Enterprises . . . . . . . . . . . . . . 13 3.3: Capacity and Output for Major Products, 1990 . . . . . . . . . . . . . . . 16 3.4: Basic Statistics for-the Steel Industry . . . . . . . . . . . . . . . . . . . . . 17 3.5: Production of Rolled Steel Products . . . . . . . . . . . . . . . . . . . . . . 19 3.6: Ferroalloy Production, 1990........................... 19 3.7: Relation of Sector Energy Use to National Energy Demand . . . . . . . . 20 3.8: Type of Energy Consumed, 1980-90 . . . . . . . . . . . . . . . . . . . . . . 20 3.9: Energy Consumption Data for the Iron and Steel Industry, 1990 .................................. 21 3.10: Energy Prices for the Iron and Steel Industry . . . . . . . . . . . . . . . . 21 3.11: Energy Consumed by Major Manufacturing Processes, 1990 . . . . . . . 22 3.12: Major Production Equipment in the Iron and Steel Sector . . . . . . . . . 23 3.13: Conversion Efficiency of Power Boilers of Several Enterprises . . . . . 24 3.14: Energy Outputs and Consumptions, Iron and Steel Enterprises (1990) ................................ 25 3.15: Specific Energy Consumptions, 1978-90 . . . . . . . . . . . . . . . . . . . 26 3.16: Forecasts of Output, Energy Consumption and Pollutant Discharges for2000and2010 ................................ 27 3.17: Generation of Pollutants by the Iron and Steel Industry . . . . . . . . . . 31 3.18: Discharge of Pollutants by the Iron and Steel Industry . . . . . . . . . . . 32 3.19: Environmental Protection Facilities for Major Equipment . . . . . . . . . 33 3.20: Pollutant Emissions and Extent of Treatment . . . . . . . . . . . . . . . . . 33 3.21: Energy Consumption of Nonferrous Enterprises, 1980-90 . . . . . . . . . 36 3.22: End Uses of Major Energy Sources, 1990 . . . . . . . . . . . . . . . . . . 38 3.23: Typical Furnaces and Kilns and their Efficiency . . . . . . . . . . . . . . . 39 3.24: Specific Energy Consumptions for Selected Process . . . . . . . . . . . . 40 3.25: Capacity and Efficiency of Major Equipment, 1990 . . . . . . . . . . . . 41 3.26: Forecasts of Process Capacities and Specific Energy Consumptions for Copper, Aluminum, Lead and Zinc Production ............ 44 3.27: Pollutant Discharges from Typical Process .................. 47 3.28: Historical Data on Energy Consumption Data for the Building Materials Industry ................................ 55 3.29: Production Distribution for the Paper Industry, 1990 ............ 69 3.30: Energy Consumption Data for the Pulp and Paper Sector, 1990 ..... 70 3.31: Energy Consumption in the Textile Industry Data for 1990 ........ 85 3.32: Energy Conservation Measures ......................... 86 3.33: Output Value Indices and Growth Rates for the Chemicals Sector and the Industrial Sector ............................ 93 3.34: Output of Selected Chemical Products . . . . . . . . . . . . . . . . . . . . . 94 3.35: Chemical Sector Enterprises and Output Values . . . . . . . . . . . . . . . 95 3.36: Chemicals Enterprises and Output Values by Location . . . . . . . . . . . 97 3.37: Share of Chemicals Output by Region . . . . . . . . . . . . . . . . . . . . . 98 3.38: Composition of Fertilizer Products . . . . . . . . . . . . . . . . . . . . . . . 99 vi - TABLES IN TEXT (cont'd) 3.39: Feedstock for Ammonia Production, 1990 .................. 100 3.40: Energy Consumption in the Chemical Industry ............... 101 3.41: Energy Resource Consumption in 1990 .................... 102 3.42: Energy Consumption for Production of Selected Chemicals . . . . . . . . 106 3.43: Forecasts of Output and Specific Energy Consumption for the Chemicals Industry ............................... 111 3.44: Utilization of Waste Materials .......................... 114 3.45: Chemical IndustryResidues ........................... 115 3.46: Waste Gas Production and Utilization ..................... 116 3.47: Economic and Other Indicators for SINOPEC, 1985-90 . . . . . . . . . . 118 3.48: Output of Main Products of SINOPEC, 1985-90 . . . . . . . . . . . . . . 120 3.49: Breakdown of Refinery Fuel and Power by Source ............. 121 3.50: Allocation of Refinery Energy Consumption ................. 121 3.51: Energy Consumption per Y 10,000 Output Value .............. 122 3.52: Energy Consumption for Oil Refining ..................... 122 3.53: Energy Consumption of Refinery Process Units . . . . . . . . . . . . . . . 123 3.54: Energy Consumption for Chemical Products and Fibers .......... 123 3.55: Energy Consumption for Nitrogen Fertilizer Production .......... 124 3.56: Lowest Reported Energy Consumption Values ................ 125 3.57: Summary of Current and Best Energy Consumptions ............ 126 3.58: Forecasts for ProductOutputs.......................... 127 3.59: Crude Oil Processed in Major Refineries ................... 128 3.60: Major Electricity Consuming Electromechanical Products ......... 132 3.61: Size Distribution of Annual Motor Output .................. 133 3.62: Comparison of Motor Efficiencies ....................... 133 3.63: Comparison of Methods for Speed Adjustment ................ 134 3.64: Major Fan Manufacturers,1990 ........................ 136 3.65: FanProductionData ............................... 139 3.66: Industrial Furnaces-Number and Energy Consumption in Major Industries ..................................... 142 3.67: Energy Consumed by Various Types of Furnace and Kiln . . . . . . . . . 143 3.68: Statistics of Compressor Manufacturer, 1987-91 ............... 146 3.69: Statistics on the Existing Industrial Boiler Stock ............... 147 3.70: Typical Boiler Operating Data in Major Cities ................ 149 4.1: Energy Consumption of Major Coal Mines, 1980-92 ............ 155 4.2: Specific Energy Consumptions of Major State-Owned Coal M ines, 1980-92 ................................. 156 4.3: Estimated Discharges of SO AND CO2 from Major Coal M ines, 1980-92 ................................. 160 5.1: Power Sector Indicators since 1985 ...................... 166 5.2: Energy Conservation Measures ......................... 167 - vii - TABLES IN TEXT (cont'd) 6.1: Stock of Agricultural Machinery, 1980-90 .................. 174 6.2: Agricultural Energy Use, 1980-90 ....................... 175 7.1: Highway Freight and Passenger Traffic, 1980-90 . ............. 184 7.2: Motor Vehicle Stock in Thousands, 1980-90 ................. 185 7.3: Road Traffic Mix onHighways......................... 186 7.4: Gasoline and Transport-Sector Diesel Use, 1980-90 ............ 187 7.5: Fuel Economy of Transportation Companies, 1980-91 ........... 188 7.6: Comparison of Truck Fuel Economy, Selected Countries ......... 189 7.7: Comparison of Bus Fuel Economy, Chin and Japan ............ 189 7.8: Historical Data on Numbers of Motor Ships ................. 191 7.9: Passenger Traffic Data, 1980-91 ........................ 192 7.10: Inland Water Lengths ............................... 195 7.11: Inland Waterway Navigation Limits, 1991 .................. 196 7.12: Main River Systems and Numbers of Ports .................. 196 7.13: Average Distance for Freight Transport .................... 197 7.14: Fuel Consumption of Water Transport .................... 198 7.15: Fuel Consumption Comparisons for Ships .................. 198 8.1: Stock of Major Appliances, 1978-90 ...................... 203 8.2: Estimate of Residential and Commercial Building Stock, 1989 ...... 204 8.3: Residential Energy Use by Energy Source, 1980 and 1990 ........ 206 8.4: Urban Residential Energy Mix, 1980-90 ................... 207 8.5: Rural Residential Energy Mix, 1979 and 1987 ................ 208 8.6: Estimates of Residential Electricity End Uses, 1981 versusl989 ................................ 208 8.7: Heat-Transfer Coefficients of Typical Multi-story Chinese Apartment Buildings versus Those of North American Houses ..... 211 8.8: Energy Use by Energy Source in the Commercial Sector, 1980-90 ...................................... 214 FIGURE IN TEXT 3.1: Primary Energy Consumption in the Iron and Steel Industry, 1990 .................................. 18 -litA - -ix - SUMMARY AND RECOMMENDATIONS Background i. China, as a major coal user, is a major source of greenhouse gas emissions. Although per capita energy consumption is relatively low-about one quarter of the world average and one tenth of typical developed country consumptions-the annual contribution of CO2 is already 9 percent of the world total. It is estimated that 80 percent comes from the use of fossil fuels as energy sources. The rapid growth of the Chinese economy means that the emissions will also continue to increase rapidly unless vigorous efforts are made to improve energy efficiency. ii. The basic objective of the study is the development of strategies for reducing greenhouse gas emissions, based on a comprehensive investigation of the current situation and projections for energy use and emissions over the next 15-20 years. The study includes a number of related elements through which the sources and sinks for greenhouse gases are characterized and options for modifying emissions are explored. This report-part of Output 1.2 of the study which addresses the potential for improvements in energy efficiency-summarizes the situation in major energy consuming sectors: industry, transport, agriculture, buildings, coal mining and electricity generation. iii. The study was started in early 1992 with formulation of the terms of reference. A team was set up to collect data, to write sector Background Reports, and to participate in case study evaluations. The latter consisted of analyses of selected technologies with the potential to save energy and reduce greenhouse gas emissions, and with broad applicability in the various sectors. The Chinese counterparts were coordinated through the State Planning Commission (SPC) and team participants were drawn from a wide range of ministries and agencies. The Energy Research Institute of SPC also took part in most aspects of the work. iv. The measures reported here for improving energy efficiencies address principally the short to medium term potential for energy savings. They mainly use well known technologies, proven in applications in China and other countries and likely to be applied in the 1990s and early years of the next century. In general, structural changes to industries and significant shifts to the type of product made in a sector are not included in this report, although it is recognized that such changes could eventually be much more significant than conventional "energy conservation measures." These important items are therefore addressed in a separate part of the study. Data v. The data collected in the study were obtained from a variety of sources. Internal data from various ministries and research institutes were used extensively, together with published national statistics. Although the sector Background Reports were written in somewhat different formats, this final report attempts to present information in a consistent format. vi. For the most part, the data are reported for 1990 but some sectors have presented data for 1991. To the extent possible, inconsistencies in the data have been eliminated: some discrepancies always occur when so many different sources are involved, and central government statistics may differ from the corresponding figures of individual ministries. Also, forecasts of sector outputs and energy use have been given by most of the ministries but there has been no attempt here to ensure total consistency between the forecasts. This consistency has been achieved in other parts of the study by using input/output modelling techniques. Energy Management and Conservation vii. This report-and the Background Reports for sectors and subsectors from which it is derived-focuses principally on the short to medium term potential for energy savings. Measures already adopted, and most of those proposed, use proven equipment and processes. The typical measures are appropriate for the present time and are likely to continue to be applied for say 15-20 years in existing plants, and as part of the design of new facilities. viii. Other changes that could have a profound effect on energy efficiency include the location of new processing plants, of an economic scale by international standards, near either raw material sources or markets. These plants would gradually replace existing subeconomic-scale facilities dispersed all over the country that are often far from both raw materials and energy sources, and distant from their markets. This topic is outside the scope of this report. ix. All sectors report that energy efficiency has been improved over the last ten years or so in China. In addition, however, all report that more needs to be done and can be done, mostly using similar methods, equipment and processes as before. Most sectors recognize the role of good energy management but there is also a strong desire to see technical solutions to the problem of high energy consumptions. While it is undoubtedly true that new equipment and new processes are essential for continued medium to long term progress in reducing energy use and emissions of greenhouse gases, the contribution of good management and of more effective operation of existing facilities should not be underrated. Indeed, it is unlikely that the optimum benefits will be obtained from modern equipment and new technologies in the absence of strong energy management. -xi- Case Studies x. For each sector, technologies with good energy conservation potential and with the potential to reduce emissions of greenhouse gases and local pollutants were identified. These were reviewed and 24 were selected for detailed analysis. All the technologies had been applied at least once in China or were about to be implemented, and all had good prospects of replication in their respective sectors. Actual plant data were then collected on field visits around China. xi. Returns on investment and payback periods were estimated for each technology application. Forecasts of "business as usual" (BAU) and "accelerated" (ACCEL) scenarios for adoption of each of the technologies or modifications were made. Both BAU and ACCEL scenarios were developed from information supplied in the Background Reports and by analogy with trends in the respective industries in other countries. Technical judgement was used to develop the respective scenarios, which were then used to calculate the forecasts of changes in energy consumption and emissions for 2000 and 2010. xii. Most of the measures were found beneficial to the industry or plant concerned. Put simply, we can conclude that energy efficiency is usually very good business, and the reduced emissions of global warming gases that are achieved at the same time are an extra bonus. xiii. The technologies analyzed as case studies are as follows: Iron and Steel Industry * Ml Open hearth converters replaced by BOF systems * M2 Continuous casting * M3 Reheat furnace renovation * M4 BF gas recovery for steam/electricity generation Nonferrous Metals * M5 Aluminum plant renovation Building Materials * B1 Replace old dry kilns by preheater/precalciner systems * B2 Wet to dry conversion * B3 Vertical shaft kiln renovation Paper * Li Black liquor recovery * L2 Cogeneration in a paper mill - xii - Textiles * T1 Cogeneration in a textile mill * T2 Caustic soda recovery S* T3 Computerized energy management systems Chemicals * CH1 Medium size ammonia plant renovation * CH2 Small ammonia plant renovation and waste heat recovery * CH3 New membrane process at NaOH plant Equipment * El High efficiency motors * E2 Variable speed motors * E3 Electric motor repair centers * E4 Steam traps Coal * Cl Coal washing and screening * C2 Coal briquetting Electricity * P1 Reduction of line losses in low voltage distribution systems * P2 Technologies for improving power plant performance xiv. For many of the technologies, the returns on investment and payback periods were found to be attractive. Particularly attractive were variable speed motor drives and improved steam traps, with good paybacks and the potential for widespread application in many industrial plants. Barriers to Energy Efficiency Improvement xv. The attractiveness of most of the case studies, and the fact that energy conservation has been seen in every sector to some extent at least, suggests that further gains in energy efficiency could be achieved by many firms for relatively low investments -or, where capital is needed, with excellent paybacks. However, the level of interest in energy conservation remains moderate, with many firms simply not taking advantage of the profitable opportunities available to them. This is by no means confined to Chinese firms: the same reluctance to invest in energy conservation is seen in many other countries. - xiii - xvi. Why therefore is energy conservation not exploited fully as a means to lower costs and higher profitability? Why is it necessary to promote energy efficiency and persuade firms to take action, when in fact energy conservation is in their own interests? There are various reasons, some or all of which will apply in any particular firm, such as: (a) A concern to maximize production, with little or no interest in the cost or efficiency of production. (b) No appreciation of the potential benefits of simple, low cost, energy saving measures. (c) A belief that energy efficiency is a new and untried approach: conservative management often prefers to stay with old methods of working. (c) A belief that energy conservation requires major funding and new investments and therefore is not applicable. (d) A proper economic analysis has not been done (perhaps the firm lacks the skills to carry out economic analyses). (e) There is a lack of technical skills in the firm to identify and evaluate energy saving opportunities. (f) The firm lacks technical skills to design and install energy saving measures, and assistance is not available locally. (g) There is a lack of appreciation of modem technologies available for their industry (lack of information). xvii. Promoting energy efficiency therefore needs to address technical, economic and institutional barriers. This can be done through educating managers and decision makers in the benefits of conservation, training plant personnel in the appropriate analytical and engineering skills, and making cost effectiveness a cornerstone of decision-making in operating enterprises. At the policy level, government can provide the right environment for cost effective conservation by offering financial incentives to reward good energy management. Both policy measures and specific actions which could encourage energy efficiency are discussed further below. Energy Efficiency Improvement in Specific Sectors xviii. For each sector and subsector, there are areas where more effort needs to be placed to achieve continuing improvements in energy utilization and reduction or amelioration of pollutant emissions. Major sector or industry-specific items which would contribute to energy savings and lower emissions include the following: - xiv - (a) Iron and Steel * Modernization of outdated furnaces and other equipment, and adoption of large-scale processing facilities in place of multiple units of a subeconomic scale. * Phase out of highly inefficient and severely polluting equipment such as open hearth steel converters and poorly designed and maintained coking plants. * Further adoption of the continuous casting process. * Recovery of waste heat and waste gases from processing units for useful application within the same plant, at nearby plants, or for electricity generation for export to the grid. (b) Nonferrous Metals * Replacement of outdated copper, lead and zinc smelters by new facilities in suitable locations. Most existing plants are at least 25 years old. * Renovation of large-scale existing facilities for the electrolytic refining of aluminum, and adoption of modern technologies for new plants. (c) Cement * Replacement of small old plants by large-scale modern plants with high energy efficiency and improved dust emission protection. There are over 5,000 small-scale plants, of which about 2,000 use primitive types of shaft kiln. * Renovation or replacement of existing large- and medium-scale plants, half of which were built over 40 years ago. This will include replacement of wet process kilns where possible by preheater or precalciner systems. * Utilization of industrial wastes such as fly ash and coal washery wastes as feed to cement kilns or for the production of blended cements should be encouraged. More blended cements should be produced to meet certain markets where their properties are fully acceptable or preferred (e.g., large-scale hydraulic dams and similar massive structures). - xv - * Electricity generation by heat recovery in old kilns should be evaluated because the economic viability of this technique is suspect. All such plants have been shut down in western countries. (d) Flat Glass, Ceramic Tiles, Lime * As for much of the buildings material sector, old and outdated plants, many of them very small by world standards, . need replacement by larger modern plants. (e) Clay Bricks * This sector is dominated by TVE plants, many of which are very small and use simple technologies. Plant size is increasing for new TVE plants, however, and there are process developments which result in good energy efficiency. TVE plants should therefore be encouraged to adopt the process developments that are already available when planning new facilities. * The proportion of hollow or perforated bricks remains very low in China at about 0.3 percent of the total output. In many developed countries, the extent of perforated brick production is high. This type of brick requires less energy to make, consumes less raw material for a given construction volume, and has superior insulating properties in service. (f) Paper Adoption of black liquor recovery in more paper plants for energy and caustic soda recovery, and increased utilization of waste materials such as bark, chips and sawdust. * Increased use of cogeneration in the paper industry. * Replacement of old small plants by larger modern facilities, in which black liquor recovery and cogeneration investments are more likely to be economic. (g) Textiles * Replacement of old small plants, as for most other sectors, and greater application of modern technologies and electronic controls. - xvi - (h) Chemicals, Petrochemicals Renovation or replacement of small and medium-scale ammonia plants, of which there are over 1,000 making ammonium bicarbonate. These were mostly built over 20 years ago and are inefficient by typical developed country standards and are too small to reach economic viability by normal evaluation criteria. * Enterprise scale needs to be reviewed, as there are many small-scale plants which are uneconomic by normal standards and are unlikely to ever reach true commercial viability. (i) Equipment * Many items of equipment are not up to the standards of similar items on the international marketplace. Technology transfer through licensing agreements should be considered for key items such as certain types of electric motor, industrial scale boilers, steam traps, fans and pumps, controls and instrumentation. (I) Coal Mining * Old equipment and inefficient items such as ventilator fans and water pumps (and associated motors) need to be replaced by modem energy efficient designs. * Coal washing and screening facilities are important in providing higher quality coals-and coals of a constant quality-to customers. This would allow higher levels of coal combustion efficiency to be achieved by most users, and sulphur emission levels would also be reduced by selective removal of sulphur compounds in the washing stage. (k) Power Sector * Old generating plants based on low or medium pressure boilers should continue to be replaced by modem, large, high pressure units. * Electricity distribution systems need upgrading to take higher loads. Power factor compensation in distribution systems should be improved and many parts of the cable systems require renewal. * All aspects of electricity distribution losses should be investigated and action taken to reduce losses in order of priorities. As suggested - xvii - in item (2), certain equipment may need replacement, including transformers. Existing large power plants based on fossil fuels. should be brought up to higher efficiency by using available technologies such as modem burners and improved heat recovery from combustion gases in water or air preheat systems, and by improving maintenance standards. Policy Actions to Promote Energy Efficiency xix. . The actions needed to stimulate interest in energy efficiency and to achieve positive results are varied in nature. It is necessary firstly to create an environment in which energy efficiency is seen as a priority because it will bring benefits to the enterprise and the individual. These benefits may be seen in a variety of forms and combinations, such as through higher profitability and higher salaries or bonuses, through better working and safer conditions in the enterprise itself, and as a cleaner and more pleasant environment for living in the area surrounding the enterprise due to reduced local pollution. Secondly, the skills and tools needed to achieve practical energy saving must be provided at the enterprise level. xx. Actions at a policy level could include a combination of measures such as the following: (a) Focusing-in laws, regulations, and tax measures-on energy efficiency as a major contributor to the profitability of enterprises, to an improvement of the local environmental conditions, and to a reduction in global warming. This focus should be directed to improving the performance of existing plants and to ensuring that new plant design standards take account of energy efficiency. (b) Maintaining pricing policies for fuels and electricity which reflect long run marginal costs and which reduce, or eliminate, subsidies for energy. (c) Supporting training to improve energy awareness at a general level and to raise skills in economic analysis and energy related technologies for enterprise and government agencies at all levels, from national to local. (d) Providing funding support to enterprises investing in energy efficient and low polluting processes, through financial incentives or in the form of loans and grants targeted to energy efficiency. (e) Providing general industrial promotion policies which encourage modernization of energy intensive industries. Adoption of best modem practice in new plants, coupled with proper analysis to ensure appropriate plant scale and location, will make a significant contribution to energy saving and emission reduction. - xviii - (f) Encouraging wider application of indigenous technologies where appropriate. These may be more suitable for application in China than large-scale technologies used internationally because they are cheaper, use local materials and take account of local skills in making the equipment concerned and operating it. It is necessary to compare options carefully on a case by case basis, but some examples of effective Chinese technologies are: * Brick-making kilns of the standard annular or hoffman type modified with heat recovery systems and utilizing waste gangue from coal washing plants. * Modified and improved low polluting coke ovens capable of operating on a small scale (well below the economic efficient size of mechanized coke ovens). (g) Enforcing more effectively the existing regulations for emission control. In addition, building of new plants should not be allowed in areas where air quality standards are not met unless existing plants reduce their discharges to accommodate the new discharge. (h) Enforcing regulations for the phase out of inefficient products such as outdated electric motor designs. There is also a need to stop old and inefficient equipment long past its normal useful life being passed on to small collective-owned enterprises from plants undergoing modernization. Specific Activities for the Short and Medium Term xxi. To address some of the barriers to energy conservation quoted previously, there are a number of activities that could be undertaken at a practical level. There is, for example, a need to promote low cost simple measures to save energy and reduce emissions. The claim that there is no money for energy conservation is frequently made by enterprises, often as an excuse for inactivity. Indeed, the gains from simple low cost actions can often pay for the next stage of a conservation plan, the investment in new equipment and processes. xxii. There is a need to promote the "efficiency ethic* in all energy consuming activities through proper management of energy and other resources. Thus, for example, wasteful consumption of raw materials should be reduced, especially materials such as steel and cement which have large amounts of energy embodied. This requires education to raise energy awareness, training in management practices and specific technologies, and training in the techniques of economic analysis for day-to-day decision making, both for enterprise personnel (operating and administrative) and for nonenterprise personnel such as staff of local government planning and economic bureaux and local development banks. xxiii. It is appropriate to adopt a local level approach to energy conservation where possible. There is often more enthusiasm for local projects as the national level approach - xix - can seem distant and unrelated to local needs. Usually a more direct involvement can be stimulated locally because the results of energy saving-and particularly emission reduction-are experienced immediately at the local level. Municipalities are usually more motivated to achieve results than national agencies because they are faced with real local problems every day. xxiv. Specific activities to raise awareness and skill levels can take a wide variety of forms. For example: (a) Setting up demonstrations of energy efficient equipment and processes, from low cost/no cost items such as energy management systems, improved maintenance procedures, and instrumentation, to higher capital investment items such as new boilers, high efficiency electric motors, and heat recovery systems. Practical demonstrations in a Chinese context are important to convince enterprise managers of the technical and economic viability of "new" technologies, even though these may already have received broad acceptance internationally. Demonstrations should include publicity activities such as seminars and plant visits. (b) Promoting a customer service approach by equipment suppliers through training in modern marketing methods, coupled with customer training to raise awareness of available alternatives and the need for economic analyses in equipment selection. (c) Setting up specific demonstration and technical assistance programs to encourage the adoption of improved "generic" technologies. This may be done firstly by creating a better awareness in users of the capabilities of selected technologies through demonstrations and secondly by upgrading Chinese industries to supply the energy efficient products. For example, such programs could be set up for steam traps, variable speed electric motor devices, industrial boilers and associated controls, steam system insulation, and cogeneration applications. A program for steam traps could include assisting the manufacturers of traps with better designs, better manufacturing techniques and quality control, and the use of better materials of construction. (d) Setting up local technical assistance centers-or raising the skill levels and equipment available in existing centers-to provide stronger support to local enterprises for economic and technical evaluations of both current operations and planned investments. Through local centers, developing the concept of monitoring and targeting at a practical level by applying the technique in local enterprises as a demonstration project. (e) Training in local service centers should be considered in three basic categories: - xx - * "Service orientation" for local service centers, planning and economic commissions, TVE bureaux and similar agencies. * Technical, mainly for enterprise personnel, to include the role of economics in daily decision making, energy management principles, and the technical aspects of relevant processes. * Investment appraisal and postinvestment monitoring for enterprise managers and financial officers, and for local development bank officials responsible for loans to firms. (f) Undertaking specific programs to address problems identified in key sectors, for example: * A line loss reduction program for low voltage local electricity distribution systems. * A program to study systematically the availability and utilization of industrial wastes (e.g., cement and brick plant feedstock; synthetic construction materials). * A program to study manufacturing techniques and applications for perforated bricks. (g) Initiating vigorous efforts to upgrade coal quality by washing, screening and briquetting, as this will have a beneficial effect on a wide range of users and allow them to improve the standard of their operations. 1. INTRODUCTION A. BACKGROUND TO THE STUDY 1.1 China, as a major coal user, is a major contributor of greenhouse gas emissions. Although the energy consumption of China is relatively low-per capita consumption is about one quarter of the world average and one tenth of typical developed country consumptions-the contribution of CO2 is already about 9 percent of the annual world total. Of the CO2 emissions, it is estimated that around 80 percent comes from the use of fossil fuel as energy sources. The rapid growth of the Chinese economy means that the emissions will continue to increase rapidly unless vigorous efforts are made to improve energy efficiency. 1.2 The basic objective of the study is the development of strategies for reducing greenhouse gas emissions, based on a comprehensive investigation of the current situation and projections for energy use and emissions over the next 15-20 years. The study includes a number of related elements through which the sources and sinks for greenhouse gases are characterized and options for modifying emissions are explored. This report-part of Output 1.2 of the study which addresses the potential for improvements in energy efficiency-summarizes the situation in major energy consuming sectors: industry, transport, agriculture, buildings, coal mining and electricity generation. 1.3 The study was started in early 1992 with formulation of the terms of reference. A team was set up to collect data, to write sector Background Reports, and to participate in case study evaluations. These case studies are analyses of selected technologies with the potential to save energy and reduce greenhouse gas emissions, and with broad applicability in the various sectors. The Chinese counterparts were coordinated through the State Planning Commission (SPC) and team participants were drawn from a wide range of ministries and agencies. The Energy Research Institute of SPC also took part in most aspects of the work. 1.4 The measures reported here for improving energy efficiencies address principally the short- to medium-term potential for energy savings. In general, the impacts of structural changes to sectors and significant shifts to the type of product made in a sector are not included in this report, although it is recognized that such changes could eventually be much more significant than short-term, conventional, "energy conservation measures." These important items are therefore addressed in a separate part of the study. B. METHODOLOGY 1.5 In summary, the work on Output 1.2 was conducted as follows: -2- (a) The scope of data requirements and the contents of "Background Reports" were defined. Assignments for team members were made. (b) The required data were assembled and incorporated in sector Background Reports. The sectors covered were: (i) Industry, divided into iron and steel; nonferrous metals (copper, aluminum, lead, zinc); chemicals; petrochemicals; paper; textiles; industrial equipment (fans, motors, boilers, steam traps, etc.) (ii) Agriculture (iii) Transportation (rail, road, water) (iv) Buildings (residential and commercial) (v) Coal mining (vi) Electricity generation (c) Preliminary recommendations were made for case studies of energy-saving technologies with potentially wide application in relevant sectors. These were examined further and a final list of 24 case studies agreed. (d) Field visits were undertaken to plants around China in which the case study technologies have been adopted or have been studied extensively and for which realistic cost data are available. The use of practical data from typical plants was seen as an important element to ensure the findings of the study were representative of commercial operations in a Chinese context. (e) A one-week seminar was carried out in Beijing to teach project evaluation methods to the main team members involved in the case studies. A standard methodology was thus adopted for all sectors. (f) The case study analyses were conducted in conjunction with Clemson University. The results are reported in detail elsewhere. (g) The information given in the Background Reports and the case study analyses was reviewed and put into this shortened report. (h) Case study data and estimates of potential application of each technology were used to estimate the possible impact on energy use and emissions in 2000 and 2010. (i) The findings on energy efficiency and the problems faced in each sector were taken into consideration in developing recommendations for short-term -3- actions to promote energy efficiency and thus contribute to reducing emissions of greenhouse gases. The main work on Output 1.2 was undertaken from early 1992 to the end of 1993. C. DATA 1.6 The data collected in the course of the study were obtained from a variety of sources. Internal data from various ministries or research institutes were used extensively, together with published national statistics. Although the Background Reports were written in different formats, this final report attempts to present information in a consistent format. 1.7 For the most part, the data are reported for 1990 but some sectors have presented data for 1991. Sometimes there are inconsistencies in the data, particularly when different sources are involved. Central government statistics may be different from the corresponding figures collected by individual ministries. In this report, forecasts of sector outputs and energy use have been given by most of the ministries but there has been no attempt here to ensure consistency between the forecasts. This consistency has been achieved in other parts of the study by using input/output modelling techniques. -4- 2. OVERVIEW OF ENERGY EFFICIENCY A. ENERGY MANAGEMENT AND CONSERVATION 2.1 This report-and the Background Reports for sectors and subsectors from which it is derived-focusses principally on the short- to medium-term potential for energy savings. Measures already adopted, and most of those proposed, use proven equipment and processes. The typical measures are appropriate for the present time and are likely to continue to be applied for say 15-20 years in existing plants, and as part of the design of new facilities. Important items such as structural changes in Chinese industry and its products are not included in this report, although it is recognized that such changes could be much more significant for energy consumption patterns and emission reduction in the longer term than conventional "energy conservation" as such. 2.2 Other changes that could have a profound effect on energy efficiency include the location of processing plant, of an economic scale based on international standards, near either raw material sources or markets. These plants would gradually replace existing subeconomic-scale facilities dispersed all over the country that are far from both raw materials and energy sources, and distant from their markets. This is also a topic outside the scope of this report. 2.3 All sectors report that energy efficiency has been improved over the last ten years or so in China. In addition, however, all report that more needs to be done and indeed can be done, mostly using similar methods, equipment and processes as before. Most sectors recognize the role of good energy management but there is also a strong desire to see technical solutions to the problem of high energy consumptions. While it is undoubtedly true that new equipment and new processes are essential for continued medium to long-term progress in reducing energy use and emissions of greenhouse gases, the contribution of good management and of more effective operation of existing facilities is often underrated. Also, it is unlikely that the optimum benefits will be obtained from modern equipment and new technologies in the absence of strong energy management. B. ENERGY EFFICIENCY IMPROVEMENT iN SPECIFIC SECTORS 2.4 Each sector and subsector quotes areas where more effort needs to be placed to achieve continuing improvements in energy utilization and reduction or amelioration of pollutant emissions. Major sector or industry-specific items which would contribute to energy savings and lower emissions include the following: -5- (a) Iron and Steel * Modernization of outdated furnaces and other equipment, and adoption of large-scale processing facilities in place of multiple units of a subeconomic scale. * Phase out of highly inefficient and severely polluting equipment such as open hearth steel converters and poorly designed and maintained coking plants. * Further adoption of the continuous casting process. * Recovery of waste heat and waste gases from processing units for useful application within the same plant, at nearby plants, or for electricity generation for export to the grid. (b) Nonferrous Metals * Replacement of outdated copper, lead and zinc smelters by new facilities in suitable locations. Most existing plants are at least 25 years old. * Renovation of large-scale existing facilities for the electrolytic refining of aluminum, and adoption of modem technologies for new plants. (c) Cement * Replacement of small old plants by large-scale modern plants with high energy efficiency and improved dust emission protection. There are over 5,000 small-scale plants, of which about 2,000 use primitive types of shaft kiln. * Renovation or replacement of existing large- and medium-scale plants, half of which were built over 40 years ago. This will include replacement of wet process kilns where possible by preheater or precalciner systems. * Utilization of industrial wastes such as fly ash and coal washery wastes as feed to cement kilns or for the production of blended cements should be encouraged. More blended cements should be produced to meet certain markets where their properties are fully acceptable or preferred (e.g., large-scale hydraulic dams and similar massive structures). -6- * Electricity generation by heat recovery in old kilns should be evaluated because the economic viability of this technique is suspect. All such plants have been shut down in western countries. (d) Flat Glass, Ceramic Tiles, Lime * As for much of the buildings material sector, old and outdated plants, many of them very small by world standards, need replacement by larger modem plants. (e) Clay Bricks * This sector is dominated by TVE plants, many of which are very small and use simple technologies. Plant size is increasing for new TVE plants, however, and there are process developments which result in good energy efficiency. TVE plants should therefore be encouraged to adopt the process developments that are already available when planning new facilities. * The proportion of hollow or perforated bricks remains very low in China at about 0.3 percent of the total output. In many developed countries, the extent of perforated brick production is high. This type of brick requires less energy to make, consumes less raw material for a given construction volume, and has superior insulating properties in service. (f) Paper * Adoption of black liquor recovery in more paper plants for energy and caustic soda recovery, and increased utilization of waste materials such as bark, chips and sawdust. * Increased use of cogeneration in the paper industry. * Replacement of old small plants by larger modem facilities, in which black liquor recovery and cogeneration investments are more likely to be economic. (g) Textiles * Replacement of old small plants, as for most other sectors, and greater application of modem technologies and electronic controls. -7- (h) Chemicals, Petrochemicals * Renovation or replacement of small and medium-scale ammonia plants, of which there are over 1,000 making ammonium bicarbonate. These were mostly built over 20 years ago and are inefficient by typical developed country standards and are too small to reach economic viability by normal evaluation criteria. * Enterprise scale needs to be reviewed, as there are many small-scale plants which are uneconomic by normal standards and are unlikely to ever reach true commercial viability. (i) Equipment * Many items of equipment are not up to the standards of similar items on the international marketplace. Technology transfer through licensing agreements should be considered for key items such as certain types of electric motor, industrial scale boilers, steam traps, fans and pumps, controls and instrumentation. (j) Coal Mining * Old equipment and inefficient items such as ventilator fans and water pumps (and associated motors) need to be replaced by modern energy efficient designs. * Coal washing and screening facilities are important in providing higher quality coals-and coals of a constant quality-to customers. This would allow higher levels of coal combustion efficiency to be achieved by most users, and sulphur emission levels would also be reduced by selective removal of sulphur compounds in the washing stage. (k) Power Sector * Old generating plants based on low or medium pressure boilers should continue to be replaced by modern, large, high pressure units. * Electricity distribution systems need upgrading to take higher loads. Power factor compensation in distribution systems should be improved and many parts of the cable systems require renewal. * All aspects of electricity distribution losses should be investigated and action taken to reduce losses in order of priorities. As suggested -8- in item (2), certain equipment may need replacement, including transformers. Existing large power plants based on fossil fuels should be brought up to higher efficiency by using available technologies such as modem burners and improved heat recovery from combustion gases in water or air preheat systems, and by improving maintenance standards. C. AcrIONS TO PROMOTE ENERGY EFFICIENCY 2.5 The actions needed to stimulate interest in energy efficiency and to achieve positive results are varied in nature. It is necessary firstly to create an environment in which energy efficiency is seen as a priority because it will bring benefits to the enterprise and the individual. These benefits may be seen in a variety of forms and combinations, such as through higher profitability and higher salaries or bonuses, through better working and safer conditions in the enterprise itself, and as a cleaner and more pleasant environment for living in the area surrounding the enterprise through reduced local pollution. Secondly, it is necessary to provide the skills and tools needed to achieve practical energy saving results in the enterprises. 2.6 Actions at a policy level could include a combination of measures such as the following: (a) Focussing on energy efficiency as a major contributor to the profitability of enterprises, to an improvement of the local environmental conditions, and to a reduction in global warming. In practice, this means providing incentives to save energy, both in terms of energy pricing policies and policies to promote new investments in energy efficient equipment and processes. (b) Supporting training to improve energy awareness at a general level and to raise skills in economic analysis and energy related technologies for enterprise and government agencies at all levels, national to local. (c) Providing funding support to enterprises investing in energy efficient and low polluting processes, through financial incentives or in the form of loans and grants targeted to energy efficiency. (d) Providing general industrial promotion policies which encourage modernization and restructuring of energy intensive sectors. (e) Enforcing more effectively the existing regulations for emission control and for the phase out of inefficient products such as outdated electric motor designs. -9- (f) Encouraging the application of lower energy consuming and cleaner indigenous technologies where appropriate, as these are often better suited to Chinese conditions (e.g., scale, maintenance needs, operator skills) and less costly than technologies used in developed countries. Each case needs thorough evaluation and whatever approach is finally adopted must be justified by the economics of the specific case. 2.7 Specific activities to raise awareness and skill levels can take a wide variety of forms. For example: (a) Setting up demonstrations of energy efficient equipment and processes, from low cost/no cost items such as energy management systems, improved maintenance procedures, and instrumentation, to high capital investment items such as new higher efficiency boilers. Practical demonstrations in a Chinese context are important to convince enterprise managers of the technical and economic viability of "new" technologies, even though these may already have received broad acceptance internationally. (b) Promoting a customer service-oriented approach to equipment suppliers through training in modern marketing methods, coupled with customer training to raise awareness of available alternatives and the need for proper economic analyses for equipment selection. (c) Setting up local technical assistance centers-or raising the skill levels and equipment available in existing centers-to provide stronger support to local enterprises for economic and technical evaluations of both current operations and planned investments. Through local centers, developing the concept of monitoring and targeting at a practical level by applying the technique in local enterprises as a demonstration project. (d) Setting up specific demonstration and technical assistance programs to encourage the adoption of improved technologies in China. This may be done firstly by creating a better awareness of the capabilities of selected technologies in customers or end-users, and secondly by upgrading Chinese industries to supply the relevant energy efficient products. For example, such programs could be set up for steam traps, variable speed electric motor devices, industrial boilers and associated controls, steam system insulation, and cogeneration applications. (e) Undertaking specific programs to address problems identified in key sectors, such as a major line loss reduction program for low voltage local electricity distribution systems, a program to study systematically the availability and utilization of industrial wastes (e.g., cement and brick plant feedstock; making synthetic construction materials), and a program to study manufacturing techniques and applications for perforated bricks. - 10 - (f) Initiating stronger efforts to upgrade coal quality by washing, screening and briquetting, as this will have a beneficial effect on a wide range of users and allow them to improve the standard of their operations. - 11 - 3. INDUSTRIAL SECTOR A. IRON AND STEEL Industry Profile and Products 3.1 The iron and steel sector consumed almost 100 million TCE in 1990, accounting for 10 percent of the national energy demand. The sector includes a wide range of activities, such as raw material mining and preparation, iron-making, steel- making, steel rolling and manufacture of finished products, coking and preparation of auxiliary raw materials and refractories, machinery fabrication and repair, ferroalloy production, and various other activities related to iron and steel such as those for making cement with water-granulated slag from blast furnaces. 3.2 In addition to manufacturing facilities, the industry has its own design and scientific research institutes, universities and colleges, hospitals and both living and recreational buildings. In 1990, there were a total of 2,010 units subordinated to the iron and steel industry with 3.67 million personnel. Within the 2,010 units, there were 1,589 operating enterprises: 151 iron ore mines 41 coke plants 656 iron and steel works 182 ferroalloy plants 75 metal product factories 38 carbon products factories 131 refractory factories 166 other enterprises A further breakdown of these enterprises and both output and energy consumption data are given in Tables 3.1 and 3.2. 3.3 The capacity of the sector in 1990 was 71.2 million tons of steel, 65.3 million tons of pig iron, and 73.4 million tons of rolled steel products (Table 3.3). The actual steel output was 66.35 million tons-ranking China as fourth in the world in terms of steel output-and total output value of the sector was Y 132.5 billion. Within the sector, there are 50 so-called key (or major) enterprises, consisting of 32 iron and steel works, 7 ferroalloy plants, 4 refractory plants, 2 carbon product factories and 5 mining companies. Various statistics for the sector are given in Table 3.4. - 12 - Table 3.1: TYPES OF ENERPPRISE AND PRODUCr OuyUT, 1990 Key Major Local medium Out of Total enterpr. local and small sector Enterprises 102 79 936 472 1,589 Outputs, million tons per year Crude steel 45.39 14.90 2.74 3.31 66.35 Pig iron 37.58 14.93 6.55 3.31 62.37 Rolled steel 32.54 12.27 5.00 1.73 51.53 Ferroalloy 0.91 0.20 0.83 4.50 2.38 Carbon products 0.18 0.01 0.15 0.58 0.91 Refractories 2.12 0 1.67 4.29 8.07 Coke 24.75 8.78 5.11 34.63 73.27 Metal products 0.64 0.05 0.53 0.27 1.49 3.4 With respect to the products made in 1990, about 70 percent was ordinary steel and 30 percent high quality steel, including 6.3 percent high alloy steel. Steel is made by three main routes-19.9 percent by the open hearth method, 21.1 percent by electric arc furnaces and 59.0 percent by the basic oxygen process. There were over 20,000 different rolled steel products with a total output of 51.5 million tons; about one third of these products were steel plate and pipe and the remainder consisted of rails, sections and wire (see Table 3.5). In general, the quality of Chinese steel is being progressively improved and 40 percent of output reached international specifications in 1990. 3.5 In 1990, coke production reached 73 million tons, of which 50 million was produced in mechanized coke ovens (68 percent). Of this, output from the metallurgical sector was 75 percent, the rest was made by the chemical, urban construction, coal and other industrial sectors, and TVE coke plants. 3.6 The production of ferroalloy was substantial at 2.3 million tons in 1990 out of a capacity of 3.24 million tons (see Table 3.6). Energy Use 3.7 The main energy sources for the iron and steel industry are coking coal, steam coal, electricity, fuel oil and natural gas. The total energy consumption for the sector reached 98.7 million TCE in 1990 as reported in Table 3.7 (about 10 percent of national energy use), although the total for all iron and steel-related activities in China was - 13 - Table 3.2: BASIC STATISTICS OF KEY IRON AND STEEL ENTRPRISES Conmple- Annual energy tion consumption SO time Major Output (coal equivalent) eirssions Enterpriesa Location (year) Processing mute products (10' ) (10' t) (t) Shoudu Iron and Beijing 1920 ore blast furnace Steel 435.6 537.0 30,445.37 Stel Co. converter roiled product Tianjin Tianjin - Pig iron - converter (open steel 158.5 1243 21,593.13 Metallurgical hearth) rolled steel Bureau TangshanIron and Tanshan, Hebei 1944 Ore - blast furnace- Steel 157.8 131.0 7,885.11 Steel Co. Province convener - rolled product Xuanhua Iron and Xuanhua, Hebei 1918 Ore - blast furnace Pig iron 100.9 1393 5,202.64 Steel Co. Province Taiyuan Iron and Taiyuan, ShanXi 1939 Ore - blast furnace - open Steel 179.1 238.2 20,958.04 Seel Co. Province hearth, convener, electic (special furnace - rotted furnace steel) Baotou Iron and Baotou, Inner 1958 Ore - blast furnace - open Steel 252.3 338.1 31,158.73 Steel Co. Mongolia berth (converter)- rolled product Anshan Iron and Anshan, Liaoning 1919 Ore - blast fumace - open Steel 765.8 852.3 68,863.45 Steel Co. Province hearth (converter) - rolled product Benxi Iron and Steel Benxi, Liaoning 1910 Ore - blast furnace- Sicel 2363 384.4 66,754.10 Co. Province converter - rolled product Fushun Steel Plant Fushun, Liaoning 1933 Steel srap - electric Steel 33.5 33.4 97531 Province furace - roiled product (special Dalian Steel Plant Dalian, Liaoning 1937 Steel scrap - electric Stool 30.3 31.7 3,368.42 Province furnace - rolled product (special st-Dl Qiqihscr Steel Plant Qiqihaer, 1957 Steel scrap - electric Steel 47.6 43.4 1,482.79 HeilongWiang furnace - rolled product (special Province useel) Shanghai Mcishan Nanjing, Jliangsu 1969 Ore - blast fumace Pig ison 159.5 138.5 19,916.63 Metallurgical Co. Province Shanghai Shanghai - Pig iron - open hearth Steel 507.5 329.9 8,117.78 Metallurgical (convener, etric (special Bureau furnace) - oled product steel) Shuicheng Iron and Iiupanshui, 1969 Ore - blast furnace - Pig iron 53.8 76.1 11,422.41 Steel Co. Guizhou Province convener - tolled product Shaanxi Steel Plant Xian, Shaanxi 1965 Steel scrap - electric Steel 14.6 14.7 781.9 province furnace - rolled product (special Shaanxi Precision Xian, Shaanxi 1965 Steel scrap - electric Steel 0.38 - - Alloy Plant Province furnace - steel Jiuquan Iron and Jiayuguan, Gansu 1970 Ore - blast furnace - Iron 44.6 88.9 8,964.00 Steet Co. Province convener - olled product Xining Steel Plant Xining. Qinghai 1969 Steel scrap - electric Steel 32.0 31.3 1,207.00 Province furnace - rolled product (special aseo - 14 - Table 3.2: (cont'd) Comple- Anal energy tion consumption SOj time Major Output (coal equivalent) emissions Enterprises Location (year) Processing route products (10' t) (10' t) (t) Shizuishan Iron and Shizuishan, 1965 Steel scrap - electric Steel 4.66 - 1,414.00 Steel Plant Ningxia furnace - rolled product - Autonomous steel wirn rope Region Baoshan Iron and Baoshan County, 1985 Ore - blast furnace - Stel 388.7 309.3 36,131.84 Steel General Works Shanghai convener - rolled product Maanshan Iron and Maanshan, Anhui 1909 Ore - blast Nrnace - Steel 204.1 276.1 11,617.20 Steel Co. Province converter (open hearth) - rolled product Wuyang Iron and Pingdingshan, 1978 Steel scrap - electric Steel 10.1 11.9 1,512.50 Steel Co. Henan Province furnace- rolled product (special Mcco Wuhan Iron and Wuhan, Hubei 1955 Ore - blast furnace - Steel 474.2 555.3 28,658.27 Steel Co. converter (open hearth) - rolled product Days Steel Plant Huangshi, Hubei 1918 Pig iron - open hearth Steel 57.3 47.4 4,922.60 (electric furnace) - tolled product Xiangtan Iron and Xiangan, Hunan 1959 Ore - blast furnace - open Steel 57.0 89.9 8,104.12 Steel Co. Province hearth - rolled product Panzhihus Iron and Panzhibus, 1970 Ore - blast furnace - Steel 191.4 197.4 31,001.79 Steel Co. Sichuan Province converter - solled product Chongqing Iron and Chongqing, 1940 Ore - blast Nnace - open Steel 83.2 141.5 15,460.75 Steel Co. Sichuan Province hearth - rolled product Chongqing Special Chongqing, 1937 Steel srap - electric Steel 28.3 30.6 446.3 Steel Plant Sichuan Province furnace - rolled product (special *ft* Changchang Special Jiangyou County 1965 Steel scrap - electric Steel 46.0 33.8 1,759.99 Steel Plant furnace - rolled product (special NDel) Chengdu Seamless Chengdu, 1982 Steel scrap - open hearth - Steel 47.0 33.3 2,240.63 Steel Tube Plant Sichuan Province rolled product Guiyang Steel Plant Guiyang, 1958 Steel scrap - electric Steel 17.1 153 7,194.24 Guizhou Province furnace - rolled product (special Guikzhou Steel Zunyi, Guizhou 1966 Steel scrap - electric Steel 1.23 - Wire Rope Plant Province furnace - rolled product - steel Wire rope Hanxing Bureau of Handan, Hebei 1951 One 318.9 - 2,144.48 Metallurgical Mines Province Lisoning Magsnesite Haicheng, 1980 Magna- 196.5 - 2,480.12 Mining Co. isoning site Province Central Shandong Zhangiiaws, 1970s Ore 113.6 - Mining Co. Shandong Province - 15 - Table 32: (cont'd) comple. Annual energy tion consumption SO, time Major Output (coal equivalent) emissions Enterprises Location (year) Processing routs products (10' t) (10' t) (t) Hainan Iron Mine Changjiang, 1958 - Ore 427.3 - 548.8 Hainan Province Pan7hihua Mining Panzhibux, 1970 Orn 885.4 - 125.00 Co. Sichuan Province imbou Forroalloy Jiozhou, Liaoning 1942 Ore - ore smkig . Frro- 6.2 M 1,260.19 Factory Province furnace alloy Liaoyang Ferroalloy Liaoyang, 1949 Ore - on smehig Ferwo- 6.2 - 239 Factory Lisoning furnace alloy Province Jilin Ferroalloy Jilin, Liaoning 1956 On on smelting Forr- 23.5 - 1,864.85 Factory Province furnace alloy Hunan Ferroalloy Xiangxiang. 1962 Ore - ore smehing For- 6.6 - 521.64 Factory Hunan Province furnace alloy Emi Ferrosiloy Emei, Sichuan 1972 Ore - ore smelting Form- 4.7 467.72 Factory Province furnace alloy Zunyi Ferroalloy Zunyi, Guizhou 1966 Ore - one smelting Form- 9.2 - 441.00 Factory Province furnace alloy NorthweAt Lambou, Gansu 1975 On ore smaltinqg Ferr- 7.4 - 121.90 Ferroaloy Factory Province furace alloy Jilin Carbon Factory Jilin, Jilin 1955 Carbon 9.98 - 562.60 Province product lanzhou Carbon lanzhou, Gansu 1966 Carbon 4.02 - 364.76 Factory Province product Luoyang Refractory Luoyang, Henan 1959 Refrac- 12.02 - 240.33 Factory Province tory Northwest Yao County, 1970 Refrac- 3.78 - 720.00 Refractory Factory Shaanxi Province tory Deyang Refractory Deyang, Sichuan 1970 Refra- 3.90 - * Factory Province tory Guiyang Refractory Gulyang, 1958 Refirac- 6.17 - 7.50 Factory Guizhou Province tory 106.89 million TCE. Energy consumptions by source are shown in Figure 3.1 and Tables 3.8 and 3.9. Table 3.10 gives indications of energy prices, which are steadily increasing for all enterprises, and shows the cost of energy now represents well over 20 percent of total manufacturing costs. - 16 - Table 3.3: CAPAcTY AND Ourru FOR MAJOR PRODuCTS, 1990 (million tons) Major products Capacity Actual output Crude steel 71.21 66.35 Pig iron 65.31 62.37 Rolled steel 73.38 51.53 Coke, total 73.43 73.27 mechanized 50.87 50.03 Ferroalloys 3.24 2.38 3.8 About two thirds of the energy used in the sector is for a few major process stages-coking, sintering, blast furnace operation, steel conversion and rolling (see Table 3.11). About 30 percent is used for all auxiliary processes and services. The main energy consuming equipment consists of furnaces, blast furnaces and converters and detailed information on such equipment in key enterprises is given in Table 3.12. 3.9 A reliable supply of electricity is important and the majority of enterprises receive power from the national transmission system for which the average generating efficiency is 30.4 percent. About 56 billion kWh of electricity were consumed in the iron and steel industry in 1990. A number of the larger plants generate their own electricity with varying levels of efficiency: for example, Anshan Iron and Steel Co. operates quite old facilities at about 31 percent while the new Baoshan plant reaches 39 percent. However, many older plants are operating under 30 percent, some as low as 25 percent. The total self generated electricity amounted to 10.4 billion kWh in 1990, about 20 percent of plant demand. 3.10 Steam is also an important energy source: except for a few plants, steam is obtained from self contained boilerhouse systems. Many of the older boilers are operated only to make steam for electricity generation although combined heat and power systems are becoming more common. Table 3.13 gives some typical boiler efficiency figures, which vary from about 60 to 83 percent. Specific Energy Consumption 3.11 There is a wide range of energy intensities shown by enterprises in this sector: this is illustrated in Table 3.14. Much of the equipment in this sector is quite old and the technologies are relatively backward in many plants. Efficiencies are therefore generally lower than for the corresponding activities in developed countries but efforts to modernize the industry have been pursued vigorously in recent years. - 17 - Table 3.4: BASIC STATsrIcs FoR THE SrEEL INDsTRY Item Unit 1985 1986 1987 1988 1989 1990 Number of enterprises and ingitutions 1,925 2,002 2,022 2,100 1,931 2,010 Gros industrial output value / Y 108 449.6 499.98 547.05 567.20 594.25 631.76 (1,325.43) Net industrial output value & Y 10' 180.6 205.05 242.26 283.01 325.83 322.13 Steel output 10' 4,679.0 5,220.8 5,627.61 5,943.0 6,158.7 6,634.86 Total energy consumption /c 10' 7,829.0 8,457.5 8,821.43 9,101.21 9,308.76 9,871.84 Total number of staff and workers (year-end) 10' persons 328.4 399.13 349.06 356.93 360.70 366.80 Number of enterprises 1,318 1,393 1,444 1,478 1,550 1,589 Gross industrial output value / Y 10 4403 489.2 534.70 551.29 585.13 621.9 Net industrial output value & Y 10r 175.8 199.8 236.26 276.78 321.81 211.78 Output of major industrial products: Steel 10' t 4,679.40 5,220.8 5,627.61 5,943 6,158.72 6,634.36 Finished rolled steel products 10' t 3,69231 4,048.0 4,385.57 4,689.22 4,859.11 5,153.21 Pig iron 10' 4,383.68 5,063.9 5,503.18 5,704.0 5,820.03 6,23731 Coke 10' t 4,794.65 5,267.0 5,790.6 6,107.62 8,623.99 7,326.63 Raw iron ore 10' t 13,735.0 14,945.0 16,142.5 16,769.86 17,185.40 17,93436 Iron concentrate 10' t 4,380.20 4,714.0 5,200.79 5,300.64 5,444.90 5,706.90, Penoalloy 10'1 149.18 159.6 184.61 208.45 236.98 238.27 Refraclory 10' t 614.18 596.4 682.88 827.12 821.11 80733 Carbon product 10' t 60.56 34.18 59.02 76.24 8832 91.27 Total energy consumption /c 10' t 7,779.63 8,403.9 8,765.4 9,064.8 9,283.56 9,871.84 Comprehensive energy consumption per ton steel eq. coal, /t steel 1.746 1.705 1.674 1.647 1.636 1.600 Total number of staff and workers (year end) 10' persons 268.14 280.75 289.08 304.4 309.1 315.3 Financial indexes: Original value of fixed assets (year-end) Y 10' 59L13 7133 793.64 8893 994.89 1,114.38 Net value of fixed assets (year-end) Y 10' 397.00 502.8 553.4 621.4 693.60 774.91 Total fuwnds Y 10 505.83 598.0 701.47 772.55 878.79 1,013.18 of which: Net value of fixed assets Y 10' 375.53 433.52 5103 658.23 634.01 701.01 Quota circulating funds Y 10' 130.33 164.48 190.94 204.32 244.78 312.17 a At 1980 constant prices, in parenthesis, at 1990 constant prices. & At current prices by allocation method. Le Coal equivalent, 10' tons. d At annual average balance. Energy Efficiency Trends 3.12 The iron and steel sector has placed strong emphasis on energy efficiency for more than 15 years: overall energy consumption has been cut from 2.5 to 1.6 TCE/t (Table 3.15 and Figure 3.2). From 1978 to 1982, the work started by stressing energy awareness, improving management and cutting obvious wastes and losses. Annual energy saving amounted to about 7 percent. (105 TCE) 73.80 72.69 70.90 64.95 66.75 69.12 73.56 77.80 84.03 87.65 90.65 92.81 98.72 Ber- ta 20.0 16.6 1os lo, a. 196.e 20 .0 21. 22.1 23.6 - 3 to - 1. 1.1 1.7 174 17.3 17.6 9. 19.1 .18.3 18.1 19.1 18.8 1. -o Percentages are shown In the diagram. - 19 - Table 3.5: PRODUCION OF ROLLED STEEL PRODUCTS (Percentage of total production) Type of product 1985 1986 1987 1988 1989 1990 Steel items for railways 3.9 3.5 3.4 3.4 3.3 3.2 Steel sections 45.1 45.4 44.6 42.7 41.1 40.0 Wire rods 16.2 15.8 15.8 17.0 .18.2 19.4 Steel plates 23.5 23.4 23.7 25.2 25.5 23.4 Steel pipes 8.7 7.9 9.3 8.3 8.4 8.4 Steel strip 2.2 2.4 2.8 3.0 3.1 3.3 Miscellaneous 0.4 1.6 0.4 0.4 0.4 2.3 Table 3.6: FERROAILOY PRODUCTION, 1990 Percentages: Ferrosilicon 32.65 Carbon ferromanganese 10.05 Silicon manganese 16.44 Blast furnace ferromanganese 17.75 Other alloys 23.11 Total Output (million tons) 2M 3.13 From 1982 to 1986, energy conservation was extended to iron ore mines and ferroalloy, refractory, carbon product, metal product -and other enterprises. Laws and regulations were introduced, working procedures improved, and a variety of energy saving technical measures introduced. These included converter gas recovery, continuous casting, multi-lance oxygen blowing of open hearth furnaces, blast furnace coal injection, and greater utilization of waste heat. During the period, annual energy saving was almost 3 percent. 3.14 From 1987, further energy saving was pursued, although this became more difficult as operations developed towards smaller batches and higher quality. Shortage of funds and inadequate investment led to less energy saving, which dropped to an annual rate of less than 1 percent. - 20 - Table 3.7: RELATION OF SECTOR ENERGY USE To NATIONAL ENERGY DEMAND 1980 1985 1986 1987 1988 1989 1990 Energy consumption, million TCE Iron and steel industry 70.90 77.80 84.03 80.05 91.01 91.55 98.72 National 802.75 766.82 808.50 866.32 929.97 969.34 980.00 Iron and steel industry as a percentage of national demand 11.76 10.15 10.39 9.24 9.79 9.44 10.07 Index of energy use by the steel industry 100.0 109.7 118.5 112.9 128.4 129.1 139.2 Table 3.8: TYPE OF ENERGY CONSUMED, 1980-90 Units 1980 1985 1986 1987 1988 1989 1990 Total demand 10' TCE 70.90 77.80 84.03 87.65 90.65 92.84 98.72 Coal 10' TCE 59.63 86.95 70.87 73.42 75.47 75.92 80.69 % 71.3 72.0 70.7 70.5 70.0 68.6 68.8 Electricity TWh 31.48 38.59 43.28 46.89 49.48 53.91 57.96 % 18.6 20.4 20.0 21.6 22.1 23.3 23.7 Heavy oil 10' t 4.21 3.51 4.13 4.15 4.32 4.45 4.49 % 8.3 6.4 6.9 6.8 6.8 6.8 6.5 Natural gas 10' m' 957 677 733 730 796 790 742 % 1.8 1.1 1.1 1.1 1.1 1.1 1.0 3.15 Many energy inefficient technologies and practices have been eliminated. Small blast furnaces (size under about 100 m), electric furnaces and converters with capacities under 5 tons, ore heating furnaces under 1,800 KVA are being shut down. Half of the obsolete and inefficient blowers, pumps, transformers and electric motors in the industry are estimated to have been replaced or modified. - 21 - Table 3.9: ENERGY CONsumFrloN DATA FOR THE IRON AND STEEL INDISTRY, 1990 Enaery consumed Total Sector/Subsector Output Sta. coal Cok. coal Coke Oil Nat. gas Total fuel Electricity energy (10') (10'/m') (10'TCE) I0 kWh 10'TCB 10 TCE Whole nation 66,348 Iron and steel industry 63,035 25,372 55,318 46,241 4,486 742 75,302 57,965 23,418 98,720 of which: Key enterprises (steel) 45,394 984 33,859 18,510 3,320 514 36,863 20,731 8,395 45,258 Local enterprises (steel) 17,641 299 21,459 14,554 344 60 19,303 8,609 3,497 22,800 Iron ore mines 166,339 791 800 - - 562 6,061 2,440 3,002 Feuroalloy . 1,933 398 - 962 156 - 512 9,748 3,936 4,448 Refractory material 3,786 692 - 699 89 - 619 2,203 890 1,509 Carbon product 329 49 - 694 14 - 603 1,365 713 1,316 Other - 22,159 - 10,022 563 168 16,840 8,748 3,547 20,387 Nonsector (stec) 3,313 - - - * - * - - Table 3.10: ENERGY PRICES FOR THE IRON AND STEEL INDUSTRY Energy price Year (Y/t coal equivalent) Percentage of energy to cost Key Local major Key Local major enterprise enterprise enterprise enterprise 1981 84.4 - 21.38 - 1982 85.8 - 22.18 - 1983 96.4 - 23.36 - 1984 96.2 - 22.70 - 1985 108.1 - 21.50 - 1986 116.1 79.2 20.36 23.54 1987 125.4 83.3 19.88 21.78 1988 150.9 109.9 20.90 22.86 1989 192.5 142.1 22.17 25.32 1990 230.3 161.6 22.81 25.97 Note: The statistics and average value cannot be obtained to the energy out-of-plan because of its great difference in region, time and variety. 3.16 New energy saving facilities have been installed, e.g., 122 continuous casting machines, bringing the extent of continuous casting up to 28 percent (compared with 90 percent in many developed countries). Blast furnace coal injection has been adopted in 75 percent of key enterprises; 40 percent of steel converters recover by-product -22- Table 3.11: ENERGY CONSUMED BY MAJOR MANUFACTURING PROCESSES, 1990 Coke Iron Steel Initial Steel Ferro- making Sintering making making rolling rolling alloys Output 10' tons 37.71 87.03 59.06 63.04 48.23 49.80 1.93 Energy use (10' tee) 7.60 8.02 34.11 6.66 3.88 6.88 4.45 Energy use as % of sector use a 7.7 8.1 34.6 6.7 3.9 6.2 4.5 La Total for these processes amounts to 71.7 percent. gas. Four dry coke quenching systems have been installed. The concept of centralized energy centers has been utilized in large plants. 3.17 As a result of conservation efforts, which of course continue, steel output was increased 1.3 times from 1978 to 1990 while energy use increased by 45 percent from 73.8 to 98.7 million TCE. Potential for Improvement 3.18 Efforts to save energy are continuing as follows: (a) Energy awareness is being promoted to all levels of staff. Rules and regulations for the energy management of enterprises have been set up, including procedures for carrying out energy balances and comparing consumption with norms. (b) Tests on operating equipment are made to check thermal efficiency. Upgrading of furnaces, ovens, processes and enterprises is carried out in parallel. (c) Many energy saving measures have been disseminated to operating plants (see list above for typical examples). 3.19 Although further energy efficiency improvements are becoming more difficult to find and more expensive to make, there remain cost effective opportunities to save energy in the industry. For example, major savings will be achieved through replacement of backward technology such as open hearth steel furnaces and rehabilitation of reheat furnaces in rolling mills. Small-scale facilities will have to be expanded and modernized to improve efficiency, or shut down. Steel and associated product qualities will have to be improved to reduce material consumption and avoid the need for still - 23 - Table 3.12: MAJOR PRODUCTION EQUHMENT IN THE IRON AND STEEL SECTOR Heat Equipment Grouping efficiency Iron-making blast furnace Grouping based on volume (i > 1000 50-999 200-499 50-199 <50 8-85 Number (unit) 31 21 82 200 796 Volume (i) 47,216 14,267 23,691 17,409 14,011 Steel-making open hearth furnace Grouping based on volume (t) >500 300-499 100-299 <100 - Number (unit) 9 11 16 32 30 Tonnage (t) 4,500 3,300 2,150 1,341.1 Furnace hearth area (m) 911.1 768.8 857.9 999.6 Steel-making electric furnace Grouping based on volume (t) > 15 5-14.9 3-4.9 1-2.9 <1 Number (unit) 65 494 301 332 211 60 Tonnage (t) 1,676 3,000 939 500.1 104.7 Power factor (kVA) 797,000 1,979,750 676,830 415,230 135,889 LD converter Grouping based on volume (t) > 100 50-99 30-49 10-29 <10 Number (unit) 7 11 11 76 66 45-50 Tonnage (t) 1,380 550 330 1,976 385 Iron ore sintering machine Grouping based on area (mi) > 130 51-129 36-50 <35 Number (unit) 14 36 36 113 75-80 Area (mi 2,455 2,898 2,681 2,.444.35 Oxygen generator Grouping based on > 10000 5000- 3000- 1000- capacity (i) 9999 4999 2999 Number (unit) 22 29 52 85 Capacity (m'/hr) 317,000 176,500 174,350 141,125 Mechanized coke oven Grouping based on number of carbonizers (unit) >65 36-64 19,35 <19 Number (unit) 33 82 174 77 50-55 Number of carbonizers (unit) 2,255 3,429 4,434 1,193 Ferroalloy blast furnace Grouping based on volume (mi > 225 100-224 50-99 <49 Number (unit) 4 11 9 2 75-80 Volume (mi) 1,065 1,100 642 73 Ferroalloy electric furnace Grouping based on > 5000 3000- 1500- <1500 power factor 4999 2999 Number (unit) 139 146 450 215 50-55 Power factor (kVA) 1,232,800 477,600 343,910 206,975 - 24 - greater production levels with corresponding increased energy consumption. All enterprises need to emphasize the role of good management. Table 3.13: CONVERSION EFFICIENCY OF PowER Bou s OF SEVERAL ENTERPRISES Steam conversion efficiency (%) 7ypical enterprises Shoudu Iron and Steel Co. 74.0 Anshan Iron and Steel Co. 78.1 Jiuquan Iron and Steel Co. 78.3 Maanshan Iron and Steel Co. 75.8 Panzhihua Iron and Steel Co. 83.1 Hanzhou Iron and Steel Works 60.3 Anyan Iron and Steel Co. 65.9 3.20 Some specific measures expected to be implemented in the iron and steel industry in the period to 2010 are illustrated in Table L: these include several specific targets for improvement, such as increasing continuous casting to over 50 percent of output. Other measures expected to receive priority attention include direct current electric steel-making, enhanced heat and waste gas recovery, pulverized coal injection to blast furnaces, reheat furnace renovation, cogeneration, variable speed motors for rolling mill drives, and replacement of inefficient small boilers. Estimates of energy saving potential are given in the table. 3.21 It is evident that there remain large differences in energy consumption per unit steel production between China and advanced countries. Differences in the scale of equipment are of course a major factor. For example, there were 1,130 blast furnaces in China in 1990, with an average pig iron output of 52,000 tpy. In Japan, the average is almost 240,000 tpy. Small equipment using backward technology obviously results in high energy consumptions. To effect changes in the sector as a whole, very large capital investments will be needed over many years. Projected Industry Outputs and Energy Consumption 3.22 The iron and steel sectoz is expected to continue to expand rapidly. Steel output is likely to be about 110 million tons per year by 2000 and 140 million tpy by 2010. Energy consumption per ton of steel should be reduced to 1.45 and 1.3 TCE/t by 2000 and 2010 respectively (Table 3.16). - 25 - Table 3.14: ENERGY OUTPUTS AND CONSUMPTIONS, IRON AND STEEL ENTERPRISES (1990) Comprehensive Output of Total energy energy Category of enterprises major products consumption consumption (10,000 t) (coal equiv. (coal equiv., 10' t) t/t) 1. Integrated iron and steel works steel: 4,449 5,525 1.242 (a) Key enterprise 3,242 3,902 1.202 (b) Local major enterprise 1,193 1,494 1.311 (c) Local small enterprise 67 129 1.917 2. Ordinary steel enterprise steel: 1,086 589 0.541 (a) Key enterprise 719 319 0.444 (b) Local major enterprise 236 152 0.644 Local small enterprise 132 118 0.896 3. Special steel enterprise 132 118 0.896 4. Iron-producing enterprise pig iron: 1,359.4 1,671.2 1.211 (a) Key enterprise 474.1 562.3 1.186 (b) Local major enterprise 356.4 407.3 1.143 (c) Local small enterprise 528.9 701.6 1.327 5. Steel rolling enterprise steel product: 816.1 230.8 0.283 (a) Local major enterprise 191.6 59.6 0.311 (b) Local small enterprise 624.5 171.2 0.271 Total 8,377.2 85.6%/a Key enterprise 5,144 52.6% Local major enterprise 2,113 21.6% Local small enterprise 1,119.2 11.4% /a Percentage in the industry. Generic Investment Options 3.23 A number of technologies were identified as having widespread replication potential in the iron and steel sector, from which the following energy efficiency measures were selected for examination in detail as case studies. For these, actual plant data were collected from various steel works around China to ensure the data on technical performance and costs were reliable. The four items studied for the iron and steel industry were as follows: (a) M1 Replacement of open hearth steel converters by the basic oxygen process. The open hearth converter (OH) was the traditional method of maldng steel from pig iron but consumes large amounts of energy and is responsible for serious pollutant emissions. The OH method has been superseded by the - 26 - Table 3.15: SPECIFIC ENERGY CONSUMTIONS, 1978-90 Decrease in 1990 Annual compared average Year 1978 1980 1985 1990 to 1978 decrease Comprehensive energy consumption of iron and steel industry (coal equiv., t/t steel) 2.524 2.039 1.746 1.611 36.17 3.87 Comparable energy consumption of iron and steel industry (coal equiv., tt steel) 1.55 1.30 1.12 1.03 33.55 3.73 Comprehensive energy consumption of key enterprises (coal equiv., t/ steel) 1.757 1.461 1.295 1.202 31.59 3.28 Comparable energy consumption of key enterprises (coal equiv., t/t steel) 1.400 1.201 1.062 0.997 28.79 3.03 Energy consumption of operating processes of key enterprises (coal equiv., kgit product) - - - - - - Coke making 312 196 183 184 15.60 1.63 Sintering 104 95 85 77 25.98 2.70 Iron making 562 531 514 509 9.43 0.97 Open hearth 233 200 156 123 47.21 5.50 Converter 143g 107La 39 28 - - Electric furnace 403 381 325 296 26.55 2.62 Steel rolling 281 157 152 135 51.96 6.45 Comprehensive energy consumption of local major enterprises (t coal equiv./t steel) 3.081 2.233 1.720 1.436 53.39 6.29 Comparable energy consumption of local enterprises (t coal equiv./t steel) 2.320 1.554 1.220 1.043 55.04 6.58 Energy consumption of operating processes of local major enterprises (t coal equiv./t product) - - - - - - Coke making 235 267 196 188 20.00 2.30 Sintering 135 120 106 86 36.30 3.62 Pelletizing 65 74 63 53 18.46 2.40 (1979) Iron making 674 613 585 557 17.36 1.72 Converter steel making 83 88 71 58 30.12 3.06 Electric furnace steel making 439 367 325 317 27.79 2.64 Breaking down 199 149 112 110 44.72 2.64 Steel rolling 230 209 138 127 44.78 6.38 (1979) L Including energy consumption of cupola. - 27 - Table 3.16: FoRECAsis OF OurTU, ENERGY CONSUMPTION AND PoLLuTANT DISCHARGES FOR 2000 AND 2010 Item Unit 1991 2000 2010 Steel: Total output (capacity) 10 t 71.0 100.0 140.0 Output out of iron and steel industry 10 t 3.81 3.80 4.00 Comprehensive energy consump- tion per ton steel t coal equiv. 1.601 1.45 1.30 Energy Consumption: Total consumption 10' t coal equiv. 103.21 140.65 176.80 in which: Coking coal 10' t 59.14 81.26 106.08 Fuel coal 10 t 26.54 39.00 54.08 Heavy oil 106 t 4.41 4.92 5.57 Natural gas 10' n 0.72 1.05 1.35 Electric power 109 kWh 59.9 70.3 90.9 (110)La (140)La (280)La Coke L 10 t 4.57 4.35 - Discharging Volume: Dust kg/t steel 9.5 8 3.5- 4.0 SO2 kg/t steel 10-13 8.5 4.0 NOx kg/t steel 1.0 0.8 0.5 CO2 kg/t steel 2,500- 2,200- 2,000- 3,000 2,700 2,400 Note: (1) The equipped ratio of environmental protection facilities will be up to 100 percent by the year 2000. (2) The level of environmental protection facilities will reach the international level of the end-1980's by the year 2010. La Figure in parentheses indicates the amount of self-generated power. Lb Purchased coke. basic oxygen furnace (BOF) which is self sufficient in energy and from which fuel gas can be recovered. The last OH furnaces were shut down in most western countries by the early 1980s. In China, the outdated OH process still represents almost 20 percent of steel-making capacity. - 28 - (b) M2 Replacement of ingot casting by the continuous casting process. In the traditional steel-making process, molten steel is poured from the converter into molds and ingots are produced. After cooling and solidifying, these are transferred to reheat furnaces where they are raised to a high temperature again prior to rolling into the required products such as bars, billets or sheets. As cooling and reheating is very wasteful of energy, continuous casting and rolling of steel has been developed and applied in many countries. The process saves energy and reduces metal losses through lower scale and scrap production. While the average percentage of steel processed by continuous casting in the world is about 60 percent, in China it is about 23 percent. (c) M3 Renovation of reheat furnaces in rolling mills. The rolling of steel products is an important activity and consumes about 70 percent of the total energy used in steel-making. The operating efficiency of reheat furnaces is therefore a key item in achieving good energy efficiency. Many reheat furnaces in China are however in poor physical condition and are only able to achieve quite low efficiencies. Renovation of the furnaces, equipping them with new burners and improved combustion air preheat, and applying modem instrumentation and controls, has broad application throughout the steel industry. (d) M4 Recovery of blast furnace top gas for cogeneration. In modem integrated steel works, blast furnace top gas is normally recovered as fuel gas for furnaces and coke ovens around the plant. In plants producing only pig iron from blast furnaces, there are usually few applications for fuel gas and therefore many plants in China discharge gas in excess of their own requirements directly to atmosphere. This is a waste of energy and is a major source of pollution. The gas may be recovered and used to generate both steam and electricity in a modem cogeneration system. 3.24 Based on data from plants in China where the proposed measures have either been implemented or are planned, rates of retum and payback periods (which include construction time) were estimated: - 29 - IRR, % Payback, years Ml Replacement of open hearth 16.1 13 M2 Continuous casting 18.6 9 M3 Renovation of reheat furnaces 36.7 1 M4 BF gas recovery 28.2 7 3.25 In addition to cost data, the energy consumption and pollutant emission characteristics of plants with and without the technologies were determined. To calculate the likely contribution of each measure to energy saving and reduction of greenhouse gas emissions, sector characteristics were then used and rates of adoption of each technology by 2000 and 2010 were estimated, taking into account the calculated rates of return and payback periods. Forecasts were made for "business as usual" and "accelerated" scenarios, where the "accelerated" case assumes major awareness campaigns and promotional efforts to persuade enterprise managements to adopt measures and invest in energy efficiency. The forecasts were as follows: 1990 2000 2010 M1 Replacement of open hearth (million tpy steel) BAU Open Hearth 11.7 8.7 8.7 BOF 0.0 3.0 3.0 Accel. Open Hearth 11.7 8.7 0.0 BOF 0.0 3.0 11.7 M2 Continuous casting (million tpy steel) BAU Ingot casting 47.6 45.8 31.4 Continuous casting 14.8 16.6 31.0 Accel. Ingot casting 47.6 45.8 12.5 Continuous casting 14.8 16.6 49.9 M3 Renovation of reheat furnaces (million tpy rolled) BAU Old furnaces 50.0 8.3 0.0 Renovated furnaces 0.0 41.7 50.0 Accel Old furnaces 50.0 0.0 0.0 Renovated furnaces 0.0 50.0 50.0 M4 BF gas recovery (million tpy pig iron) BAU BF capacity, no recov. 10.0 4.0 0.0 Capacity with recovery 0.0 6.0 10.0 Accel. BF capacity, no recov. 10.0 2.0 0.0 Capacity with recovery 0.0 8.0 10.0 -30- 3.26 Details of the present levels of use of the various technologies and the assumptions made regarding future adoption are given in Appendix A, together with the energy consumption and emissions factors used in the calculations. Projected Impacts on Energy and Emissions 3.27 Using the BAU and accelerated forecasts indicated above, the expected impacts on the iron and steel sector energy use were calculated as follows: Savings I03 Savings _1 TCE/vr by 2000 TCE/yr by2N10 BAU Accel. BAU Accel. M1 Replace open hearth 146 146 146 568 M2 Continuous casting 73 73 658 1,425 M3 Reheat furnaces 459 550 550 550 M4 BF gas recovery 296 394 493 493 3.28 Reductions in CO2 emissions were forecast as follows: CO, reduction CO, reduction 1CPTY by 2000 10 TPY by 2010 BAU Accel. BAU Accel. M1 Replace open hearth 154 154 154 602 M2 Continuous casting 48 48 428 928 M3 Reheat furnaces 296 355 355 355 M4 BF gas recovery 237 316 395 395 Emissions 3.29 Furnaces and ovens are the main sources of pollutants such as SOj and CO2. Particulate emissions are also important in this industry. Tables 3.17 and 3.18 give some information on the current generation and discharge of pollutants from various processes. 3.30 Various measures have been taken to improve the situation. Slags are recovered from blast furnaces, steel converters and ferroalloy plants for utilization in cement production. Iron and steel plant operating equipment is now being fitted with dust - 31 - Table 3.17: GENERATION OF POLLUTANTS BY THE IRON AND STEEL INDUSrRY (Units = kg per ton of product) Other Waste- Waste Products Dust CO2 SO2 NOx compounds water slag Iron ore - - - - - - 6,000- 8,000 Concentrate - - - - - - - Sinter 25 176 5 - - 6-9 - Coke 5 1,134 21 0.37 0.77 0.2-0.3 - Pig iron 50 675 - - - 10-15 500 Ingot: Open hearth steel 12-15 137 - - - 1-3 150 Converter steel 16-25 146 - - - 1-3 150 Electric steel 2-10 40 - - - 1-3 150 Breaking down - 165 - - - 2-6 0.3-0.5/a Hot rolling - 268 - - - 10-15 0.5-1.0& Coal consumption for steam h 10-30 2,000 10-20 3.6 - - 200 Ferroalloy 20-30 1,730 - - - - 1,500 Overall discharging volume per ton steel 120-130 2,500- 25-26 - - - - 3,000 La Quantity of scale. & The average value from combustion of coal in boilers. collection facilities, such as wet dust scrubbing systems, filter bags and electrostatic filters. Excluding steel-making electric furnaces and certain ferroalloy furnaces, it is estimated that dust removal equipment is installed on 90 percent on dust producing furnaces and ovens. Processes releasing water with organic contaminants such as coke ovens and rolling mills are about 90 percent equipped with wastewater treatment systems: these include biological and chemical treatment of coking oven water, and deoiling and filtering of rolling mill effluents. Indications of the levels of adoption of various environmental protection facilities are given in Table 3.19. As a result of efforts made in the sector, emissions and the levels of waste treatment have been improved significantly (Table 3.20). -32- Table 3.18: DISCHARGE OF POLLUTANTS BY THE IRON AND STEEL INDUSTRY (Units = kg per ton of product) Equipping rate of environmental Other Waste- Waste protection Products Dust CO2 SO2 NO, compounds water slag facilities (m/t) (%) Iron ore - - - - - - 6,000- 8,000 Concentrate - - - - - 1-2 - Wastewater, 100 Sinter 6.25. 176 5 - - - - Dedusting, 94-100 Coke 1.25 1,134 1.0 - - 0.02-0.03 - Biochemical, 90 Pig iron 2.5 675 - - - 1.5-2.0 500 Dedusting, 91 Ingot: OH steel 3.0-3.8 137 - - - 150 Dedusting, 91 BOF steel 2.5 146 - - 1-3 150 100 EAF steel 3-12 40 - - - - 150 61 Breaking down - 165 - - - 1-2 - Wastewater, 95 Hot rolling - 268 - - - 1-2 - Wastewater, 95 Coal combustion for steam /a 7.5 2,000 10-20 3.6 - - 200 - Ferroalloy 12-25 1,730 - - - - 1,500 Overall discharg- ing volume per 9.5 2,500- 10-13 1.0 - - - ton steel 3,000 La The average value from combustion of coal in boilers. B. NONFERROUS METALS Industry Profile and Products 3.31 In 1990, the nonferrous metals industry consisted of 917 enterprises producing metals and 240 organizations engaged in prospecting and construction, conducting scientific research, and operating universities and polytechnic schools. The total employment was 1.37 million personnel for all branches of activity. - 33 - Table 3.19: ENVImONMENTAL PROTECTION FACIllTIES FOR MAJOR EQUIPMENT Equipping Production equipment Environment protecting facilities rate (%) Sintering machine Fume dedusting in the front of machine 100 Sintering machine Fume dedusting in the end of machine 94 BOF First dedusting of fume 100 EAF First dedusting of fume 81 OH First dedusting of fume 91 Mineral dressing Wastewater purification and reusing 100 Coke oven Wastewater biochemical treatment 100 Blast furnace Wastewater recirculating use 90 BOF Wastewater recirculating use 100 Rolling mill Wastewater recirculating use 95 Table 3.20: POLLUTANT EMISSIONS AND EXTENT OF TREATMENT 1981 1990 Ratio of waste gas treatment (%) 41 87 Emission of SO2 per ton steel (kg) 14 10 Emission of dust per ton steel (kg) 36 17 Ratio of wastewater treatment (%) 27 93 Recovery rate of iron bearing slurry (%) 81 93 Tree coverage rate of enterprises (%) 7 19 3.32 The main products of the sector are ten metals-aluminum, copper, lead, zinc, nickel, tin, antimony, mercury, magnesium, titanium-and their alloys in various types of formed or shaped materials. Hundreds of other products and by-products are - 34 - produced in small quantities, made from elements such as tungsten, cobalt, molybdenum, bismuth, cadmium, rare earth metals and rare metals. The sector also produces sulphuric acid, cement and carbon products. China ranks sixth in the world for production of nonferrous metals. 3.33 The present production capacity is about 3 million tons of metals per year. Those produced in the largest quantities are aluminum, copper, lead and zinc: together, these make up over 90 percent of the output of the ten metals and their manufacture takes about 80 percent of the energy for the whole nonferrous industry. In 1990, 2.5 million tons of nonferrous metals were produced, including 2.26 million tons of copper, aluminum, lead and zinc. Recent statistics are as follows: 1985 1989 1990 Capacity Operating enterprises 747 894 917 - Construction, prospecting 73 56 54 - Universities, schools 125 172 186 - Employment (millions) 1.26 1.35 1.37 - Main products (million tons) Copper 0.413 0.562 0.559 0.60 Aluminum 0.525 0.758 0.854 1.20 Lead 0.225 0.302 0.297 0.40 Zinc 0.306 0.451 0.552 0.55 Intal 1£.42 2M21 22i 22 Energy consumptions (10 TCE) For 4 major metals - - 14.91 For 10 metals 13.63 17.52 18.14 For entire sector - - 18.91 3.34 Aluminum is produced from bauxite by the Bayer process or by a sintering process, or by a combination of the two. Chinese bauxite is usually the monohydrate type. The industry includes 65 smelters and aluminum oxide plants of which 12 major plants are situated in the cities of Fushun, Zhengzhou, Guiyang, Lanzhou, Xinin and Baotou, in the Ningxia Autonomous region and in Shanxi Province. Plant capacities vary from 30,000 to 100,000 tpy electrolytic aluminum: almost all facilities were constructed in the 1950s and 1960s. - 35 - 3.35 The copper industry is based mainly on the processing of sulphide ores containing 0.5 to 2.0 percent copper. Operations include ore crushing and milling, followed by concentration in flotation processes to about 20-30 percent copper. The concentrates are dried, calcined or sintered in a variety of equipment to produce crude copper, which is further refined by the electrolytic process. There are 120 mines and smelters, of which 9 major plants are located in the cities of Baiyin, Tonglin, Shenyang, Kunming, Shanghai, and in the provinces of Hubei, Shanxi, Jiangxi and Guangdong. These have capacities from 20,000 to 70,000 tpy of copper. Most were built in the 1950s and 1960s and many have operated 30 years or more. 3.36 There are about 200 lead and zinc mines and smelters with capacities from 10,000 to 16,000 tpy, most at least 25 years old. The main plants-about 16-are in Zhuzhou, Shaogang, Shenyang, Baiyin, Jingxi and Changsha. The basic processes include sintering and smelting in blast furnaces. 3.37 Copper, aluminum, lead and zinc, and materials made from these metals, are sold mainly on the domestic market. For example, in 1990 only about 3 percent copper, 8 percent aluminum, 15 percent lead and 10 percent zinc were exported although much of the production can meet the highest international specifications. Energy Use 3.38 In 1990, the industry consumed in total 18.91 million TCE of which about 13 million TCE or 70 percent were used by state-owned enterprises and 5.14 million TCE or 30 percent by local and TVE operations. For the 10 main metals, consumption was 18.41 million TCE. The nonferrous sector consumes about 1.9 percent of the national energy demand. 3.39 Energy use in 1990-including TVE plants-for manufacture of the 10 main metals and related products was as follows: Elec. Coal Coke Oil Nat. gas Total 10' 10, 10, 10P 10 10' kWh t t t m TCE 10 major nonferrous metals 25.46 7,360 1,008 734 70.74 18.14 of which: Copper 3.38 1,011 303 231 48.78 2.70 Aluminum 15.10 3,562 189 275 0.35 9.76 Lead, zinc 0.21 1,320 311 46 0.00 2.18 Percent based on TCE L 56.7 29.0 5.4 5.8 0.5 100.0 La Other energy sources, not specified, 2.6 percent. -36- 3.40 The 1990 energy consumption for the 10 metals may be broken down into that used for national and local enterprises as follows: Quantity 106 TCE Percent National plants 13.00 71.7 Local (TVEs) 5.14 28.3 ILA 10MA 3.41 The total energy consumption is equivalent to 2.7 TCE per Y 10,000 output value and 6.8 TCE per ton of nonferrous metal on average. The manufacture of one ton of nonferrous metal consumed on average 10,650 kWh of electricity, 3.08 tons of coal, 0.42 tons of coke and 0.22 tons of oil. The highest energy consumption was for aluminum manufacture, mostly. for smelting. For the manufacture of copper, mining operations took 70 percent and smelter operation 30 percent. Further data on energy consumption from 1980 to 1990 are given in Table 3.21. Table 3.21: ENERGY CONSUMFION OF NONFERRous ENTERPRISES, 1980-90 Qty % Qty % Qty % Whole Industry: Electricity 109 kWh 15.43 57.11 19.43 57.61 25.46 56.70 Coal 10' t 4350 28.45 5302 27.78 7360 28.97 Coke 10' t 576 5.12 900 6.41 1008 5.39 Fuel oil 10' t 530 6.93 731 7.66 734 5.78 Natural gas 106 m' 36.0 0.44 32.7 0.32 70.74 0.51 Others 1.95 0.22 2.65 10 TCE 1=..91 1001M 1 1= ILL4 1=0 of which: Consumption by state-owned enterprises 10' TCE 7.90 72.37 10.10 74.12 13.00 71.66 Consumption by local ent. 106 TCE 3.02 27.63 3.53 25.88 5.14 28.34 - 37 - 3.42 Estimates of the end uses of energy were made for 1990 operations and these are shown in Table 3.22. About half the coal was used for electricity generation and 60 percent of the electricity for electrolysis. 3.43 With respect to process energy use, several major technologies are applied in this sector. For example, the production of copper consists of three basic stages-primary smelting, refining and electrolysis. The second and third stages are much the same for all plants but the first stage may be carried out in a blast furnace, an electric furnace, a flash furnace or a reverberatory furnace, with quite different energy consumptions (see Table 3.23). The production processes for the other major metals are also quite diverse: some typical energy consumption data are given in Table 3.24. 3.44 With respect to coal supplies, about one seventh of energy is purchased at a negotiated market price and the remainder at the price set by the plan (which is about Y 50 per ton less expensive). About 90 percent of the coke demand is supplied by the plan at a price Y 80 to 100 cheaper than the open market price. In 1990, about 80 percent of oil needs were supplied on the plan at Y 150/t, and the remaining 20 percent was purchased at Y 320 to 350/t above that. Energy Efficiency 3.45 The energy efficiency of nonferrous metal manufacture is not as good in China as in many advanced countries for various reasons, including: (a) Relatively poor resources and lower ore grades result in additional energy consumption in mining and processing. (b) Backward production technologies and equipment require higher energy inputs. (c) In recent years, funds for capital investment and technical transformation have been used primarily to increase production, with relatively little used for energy saving investments. (d) Some processing plants carrying out trial production runs-either as new plants or after technical modifications-consume more than normal quantities of energy. 3.46 Information on the efficiency of major items of equipment was collected for 1990 operations and is presented in Table 3.25 for boilers and gas generators and Table 3.23 for furnaces and kilns. The combustion efficiency of the smallest boilers was 50 percent and of the largest 85 percent. Furnace efficiencies are often quite low and suggest potential for improvement through modernization and replacement of the oldest and least efficient items. - 38 - Table 3.22: END USES OF MAJOR ENERGY SOURCES, 1990 Unit Quantity Percent Coal: Electricity generation, gas supply 106 t 3.50 48.0 Fuel and reductant 106 t 3.20 43.0 Gas generation 106 t 0.50 6.8 Other uses 106 t 0.16 2.2 TDW 10 t Coke: Fuel and reductant 106 t 0.85 85.0 Gas generation 10 t 0.15 15.0 a10t 1 Fuel oil Fuel and reductant 106 t 0.47 88.0 Boiler fuel 106 t 0.06 12.0 IQ2W 1w t 05 ~ Electricity: Electrolysis of aluminum, copper, lead, zinc 10' kWh 14.6 57.5 Electric furnaces, heating 10' kWh 1.2 4.7 Motor drives 10' kWh 8.0 31.5 Other 10' kWh 1.6 6.3 IMa 10' kWh 25A 1=. Steam: Electricity generation, steam supply 106 t 13.50 60.0 Heating industrial buildings 106 t 2.00 8.9 Metallurgical processes 10' t 15.70 69.8 L Note that steam for electricity generation and steam used for production processes are partially double-counted, thus the total do not add to 100 percent. - 39 - Table 3.23: TYPICAL FURNACES AND KILNS AND THEIR EFFICIENCY No. Equipment Size and capacity Piece Heat efficiency 1. Aluminum electrolytic cell Prebaked & top or side conduct Baked 2. Copper electrolytic cell 7,000 3. Lead electrolytic cell 9,000 4. Zinc electrolytic cell 5. Sintering machine 20 to 100 m 9 6. Boiling furnace 2.5 to 42m 30 45 to 50 7. Copper blast furnace 5.3 to 12.6 m2 9 50 to 55 8. Copper reverberatory furnace 12 to 270 in 15 15 to 25LA 25 to 301b 9. Copper, nickel, and tin converter 5 to 50 t 35 35 to 50 10. Lead blast furnace 2.5 to 8 e 5 50 to 55 11. Lead & zinc closed blast furnace YS2010 2 70 12. Copper & nickel smelting electric furnace 12,000 to 30,000 kVA 6 60 to 70 13. Concentrate calcining kiln t1.6 to 2.6 m 19 55 to 65 14. Slag volatilizing kiln t1.5 to 2.4 m 8 20 15. Aluminum oxide grog kiln $3.6 to 4.5 m 17 60 to 65 16. Aluminum oxide calcining kiln $2.6 to 4.0 m 15 50 to 55 17. Cement kiln t1.5 to 4.5 m 35 60 18. Lime kiln 3.0 to 4.0 m 8 75 to 80 19. Carbon. element calcining furnace 12 to 24 chambers 12 20. Carbon. element rotary kiln t2.0 to 2.5 in 4 21. Zinc distilling furnace 24 35 to 40 22. Zinc rectifying furnace 21 35 to 45 La Refining. /b Smelting. Energy Efficiency Trends 3.47 Efforts have been made since the early 1980s to reduce energy consumption by process renovation, equipment modernization and the utilization of new technologies. In the mining area, improved methods and equipment have been adopted and large-scale mining in open pits is used in several new mines. Other changes include the use of electricity in place of compressed air for underground drilling, and using more efficient vehicles for underground mining and transportation. Crushing and milling operations have been improved also, modified flotation cells are used for ore concentration, and autopress - 40 - Table 3.24: SPECIFIC ENERGY CONSUMIONS FOR SELECTED PROCESSES No. Tech. name of products Unit 1980 1985 1990 1. Aluminum oxide produced by caulking TCE/t - 1.60 2.00 2. Aluminum oxide produced by combination process TCE/t - 1.26 1.50 3. Aluminum oxide produced by byaer method TCE/t - - 0.90 4. Electrolytic aluminum produced in precalcining cell DC kWh/t - - 14,450 5. Electrolytic aluminum produced in upper insert cell DC kWh/t - - 15,800 6. Electrolytic aluminum produced in side insert cell DC kWh/t - - 14,850 7. Crude copper from flash furnace TCE/t - - 0.78 8. Crude copper from electric furnace TCE/t - - 0.98 9. Crude copper from blast furnace TCE/t - - 1.26 10. Crude copper from reverberatory furnace TCE/t - - 1.30 11. Lead from sintering blast furnace TCE/t - - 0.80 12. Lead from closed blast furnace TCE/t - - 0.84 13. Zinc from closed blast furnace TCE/t - - 0.45 14. Zinc produced by hydrometallurgical proc. TCE/t - - 2.22 15. Zinc from vertical retort. TCE/t - - 2.70 filters used instead of vacuum filters to remove water from concentrates before further processing. As a result, energy consumption per ton of contained copper in copper concentrates has dropped from 5.8 TCE/t in 1980 to 4.0 TCE/t in 1990 in spite of the gradual decrease in ore grade and deeper mining. 3.48 For copper smelting, various measures have been adopted. These include modem flash furnaces, adding oxygen rich air blowing to older furnaces to increase capacity and reduce coke rate, utilizing waste heat from high temperature combustion gases of reverberatory furnaces to raise steam for electricity generation, and reforming the design of such furnaces and adding automatic controls to reduce energy consumption by about 50 percent. Consumption in copper smelting has dropped from 2.4 to 1.95 TCE/t from 1980 to 1990. 3.49 - In the processing of aluminum, aluminum oxide plants have been renovated, calcining kilns modified, the silicon removal process improved and flash calcining adopted in place of rotary lilns. Statistics on the energy consumption of the industry indicate an - 41 - Table 3.25: CAPACrTY AND EF[CIENCY OF MAJOR EQuIPMENT, 1990 No. Equipment Size Pieces Heat efficiency Heat vapor (%) (Y, t/h) Boiler 1,520 8,000 1. Coal-powder boiler 130 t/h 13 85 1,690 2. Coal-powder boiler 75 t/h 18 85 1,350 3. Coal-powder boiler 50-60 t/h 5 82 260 4. Coal boiler 35 t/h 11 76 385 5. Coal boiler 20 t/h 26 72 520 6. Coal boiler 10 t/h 35 70 350 7. Coal boiler 6 y/h (60) 65 (360) 8. Coal boiler 4 t/h (200) 60 (800) 9. Coal boiler 2 t/h (350) 55 (700) 10. Coal boiler <2 t/h (800) 50 (1,500) Gas Generator (60) 70 avg. 1. Gas generator t3 m (50) 72 2. Gas generator <4 3 m (10) 68-70 increase in energy use, however, as more energy is used in processing while modified plants are brought on line. 3.50 Energy saving measures adopted in electrolytic aluminum refining plants include using larger cells while shutting down the smallest cells, improving rectifier efficiencies to save about 300 kWh/t aluminum, and applying a number of other measures such as microcomputer controls, adding lithium salts to the electrolyte, and using improved cathodes, the latter saving about 400 kWh/t. 3.51 In the production of lead and zinc, improvements include using modern imported technologies for lead smelting, increased use of waste heat from smelters, installation of waste heat boilers on calcining and distilling furnaces, use of this steam for electricity generation, reconstruction of zinc redistilling furnaces, and elimination of outdated zinc smelters. 3.52 The overall results of adopting a wide range of energy efficiency measures and emphasizing good energy management has been estimated as a saving of 1.5 million TCE in the period 1980 to 1990, representing an average of 1.5 percent per year. Industry output has increased by 90 percent while energy use has grown 70 percent. Data for - 42 - operations from 1980 to 1990 indicate relative energy consumptions and trends in unit energy use: (TCE/t metal) 1980 1985 1990 Average unit consumption for 10 metals 7.26 6.65 6.80 Manufacture of aluminum oxide - 1.61 1.95La Aluminum ingot - 7.34 7.20 Copper smelting 2.40 2.10 1.90 Lead smelting - - 0.80 Zinc smelting - 2.80 La Energy consumption raised due to switch to oil from coal and non standard operations. Potential for Improvement 3.53 Technological changes in nonferrous metal processing and increased demand will result in many new plants being built and old plants modernized. With respect to the copper industry, about 550,000 tons were produced in 1990, consuming 1.1 TCE/t, out of a capacity of 600,000 tpy crude copper. By 2000, it is expected that capacity will have risen to between 750 and 850,000 tpy. The total capacity of flash smelting will be double that of 1990 and the capacity of new and rebuilt bath smelters will be 450,000 tpy. Electric furnace capacity will be maintained but blast furnace capacity reduced to 15,000 tpy. The overall energy consumption is expected to fall to 0.8 TCE/t of copper. By 2010, capacity should be 950,000 tpy and energy consumption say 0.6 TCE/t. 3.54 With respect to lead, capacity in 1990 was about 400,000 tpy although actual production was only 297,000 tons with an average consumption of 0.8 TCE/t of crude lead. By 2000, it is expected that capacity will be 600,000 tpy. The main purpose of plant modernization will be to improve environmental conditions rather than save energy. Energy consumption is expected to drop to about 0.6 TCE/t. By 2010, capacity should reach 750,000 tpy and energy consumption 0.5 TCE/t. 3.55 Zinc smelting capacity in 1990 was about 550,000 tpy and output was equal to this: energy consumption was 2.5 TCE/t. By 2000, capacity is expected to be 800,000 tpy. The modern ISP technology is expected to rise from 70,000 to 150,000 tpy capacity. Vertical vat smelting capacity will remain at 180,000 tpy and hydrometallurgical process capacity will rise from 300,000 to 500,000 tpy. Energy consumption per ton of refined zinc should be reduced by about 20 percent. By 2010, capacity should reach 1,240,000 tpy and energy consumption 1.8 TCE/t. -43 - 3.56 Regarding aluminum manufacture, ore properties have led to aluminum oxide being produced mainly by a combination process. The Bayer method will be adopted increasingly and direct heating methods replaced by indirect heating. Flash smelting, improved calcining, continuous silicon removal, and modernization of existing evaporators will also contribute to energy efficiency. In 1990, capacity for aluminum oxide manufacture was 1.7 million tpy and actual production 1.5 million tons, of which 45 percent was made by calcining and 55 percent by the combination process. Overall energy use was 1.7 TCE/t. By 2000, alumina output could reach 4.5 million tons of which 16 percent would be made by the Bayer process, 12 percent in the calcining process and 72 percent in a combination process. An energy consumption of 1.1 to 1.2 TCE/t is anticipated. By 2010, capacity should reach 5.5 million tpy of alumina with energy consumption 0.9 to 1.0 TCE/t. 3.57 With respect to electrolytic refining of aluminum, capacity in 1990 was 1.2 million tpy. Actual output was almost 0.9 million tons, of which 20 percent came from prebaked anode cells, 7 percent from top insert autobaked anode cells and the balance from side insert autobaked anode cells. Each ton of aluminum ingot consumed on average 6.8 TCE. By 2000, capacity should be 2.2 million tpy with the output from prebaked anode cells doubled compared with today's level. Emphasis will be placed on improved operation of large prebaked anode cells and the small side insert cells (power rating under 60 kA) will be eliminated. Medium-scale side insert cells will be fitted with computer controls for the cathodes. Average energy consumption is expected to decrease to 6.5 TCE/t. By 2010, capacity should be 3 million tpy electrolytic aluminum. 3.58 A summary of forecasts for capacities and energy use of various processes is given in Table 3.26. Projected Industry Outputs and Energy Consumption 3.59 Indications of trends in processes and plant capacities are given above. The output of 10 nonferrous metals will be about 4.4 million tons by 2000 and 6.0 million tons by 2010. The expected energy consumption will be as follows: Production Spec. cons. Total cons. I p TCE/ton 1W T(: 2000 2010 2000 2010 2000 4 major metals: Copper 0.80 0.95 5.33 5.33 4.26 5.06 Aluminum 2.10 3.00 10.00 9.50 21.00 28.50 Lead 0.50 0.60 1.70 1.67 0.85 1.00 Zinc 0.80 1.24 3.10 3.00 2.48 3.72 10 nonferrous metals 4.40 6.00 6.50 6.40 28.60 38.29 Complete sector 33.65 44.01 -44- Table 3.26: FORECASTS OF PROCESS CAPACrflES AND SPECIFIC ENERGY CONSUMPIONS FOR COPPER, ALUmINUM, LEAD AND ZINC PRODUCTION No. Process 198() 1985 1990 Capac. Energy Capac. Energy Capac. Energy consump. consump. consump. 104 t TCEIt 10' t TCE/t 10' t TCE/t Cu. Smelt 1. Flash furnace 9.00 0.76 30.00 0.60 30.0 0.50 2. Bath smelting 0.00 - 45.00 0.70 45.0 0.80 3. Elect. furnace 7.00 0.98 7.00 0.95 7.0 0.85 4. Blast furnace 12.50 0.90 1.50 0.90 1.5 0.30 Lead Smelting 1. Blast furnace 38.50 0.78 23.00 0.70 23.0 0.60 2. I.S.P. 4.20 0.84 8.00 0.70 8.0 0.60 3. Q.S.L. - 23.00 0.55 25.0 0.50 S.K.S Zinc Smelting 1. Wet-smelting 30.00 2.22 50.00 2.00 50.0 1.80 2. I.S.P. 7.00 2.45 15.00 2.00 21.0 1.80 3. Vertical retort 22.00 2.67 18.00 2.20 20.0 2.00 Aluminum Oxide 1. Bayer - - 70.00 0.70 90.0 0.60 2. Sintering 70.00 2.00 60.00 1.60 70.0 1.55 3. Combination & connection 80.00 1.50 320.00 1.10 400.0 0.98 Aluminum Electrolysis 1. Upper-insert cell 6.00 7.00 3.00 6.80 8.0 6.35 2. Precalcining cell 19.00 8.52 100.00 6.20 100.0 5.85 3. Side-insert cell 60.00 6.80 93.00 6.50 120.0 5.85 3.60 The projected breakdown of energy consumptions for manufacture of the 10 metals is as follows: - 45 - Unit 1990 2000 2010 Coal 10' t 7,360 11,200 15,900 Coke 10' t 1,008 1,260 2,100 Electricity 109 kWh 25.46 42.30 59.40 Fuel oil 10' t 734 800 1,200 Natural gas 106 m' 70.74 11.42 16.20 Petroleum coke 10' t 0 670 1,030 Other 10' t 200 340 500 1otal 106 TCE IL4 2MDi L22 Generic Investment Options 3.61 A measure contributing to energy efficiency which has good replication potential in the aluminum industry is the renovation of alumina sintering kilns (Case Study M5). This involves replacing old inefficient kilns with a modem flash drying and preheater kiln process, saving energy and increasing plant capacity. Actual plant data for this measure were obtained from the Shandong Aluminum Works. The internal rate of return was calculated to be 84.3 percent and the payback three years. 3.62 Based on the existing plant capacity in the industry of 6 million tpy which is considered to be appropriate for renovation in a similar manner, the following forecasts were made for "business as usual" and "accelerated" scenarios: MS aluminum plant renovation 1990 2000 2010 (million tpy alumina) BAU Unmodernized capacity 6.0 4.0 0.0 Renovated capacity 0.0 2.0 6.0 Accel. Unmodernized capacity 6.0 3.0 0.0 Renovated capacity 0.0 3.0 6.0 3.63 Details of the assumptions made regarding future renovation of aluminum plants, together with energy consumption and emissions factors for both unmodemized and renovated plants, are given in Appendix A of this report. - 46 - Projected Impacts on Energy and Emissions 3.64 The expected impacts of aluminum plant renovation on the nonferrous sector energy use and emissions were calculated as follows: 101 TCE/yt by 2000 1J TCE/ r by 2010 BAU Accel. BAU Accel. Energy savings 330 494 989 989 W t/yr by 2000 10 tyr by 210 BAU Accel. BAU Accel Reductions in CO emissions 167 250 500 500 Emissions 3.65 The nonferrous metals sector includes many processes in which pollutant emissions occur, with the production of solid and liquid wastes and the release of atmospheric discharges, both dust and smoke. Because of the toxic nature of many of the metals and their compounds, emissions are always potentially hazardous. Data on typical emissions are given in Table 3.27. 3.66 Various measures have been taken to reduce pollution, so that emissions are now only slightly higher than in 1982 although annual output has doubled from 1.2 to nearly 2.4 million tons. These measures include the following: (a) Laws and Regulations. Several major regulations have been introduced since 1984. (b) Personnel. The numbers of environmental protection organizations and their staffing levels have been increased. These organizations are responsible for environmental management, monitoring and scientific studies. - (c) Treatment of Sulphur Dioxide. Increased quantities of sulphuric acid are now made from waste gases, resulting in the SO0 emissions being held to 1982 levels. Several large acid production units have been commissioned, e.g., Jinchun Nickel Corp., Yunnan Smelting Co., Huludao Zinc Plant, Guixi smelting plant. (d) Fluorides. Efforts have been made to reduce emissions of fluoride gases from aluminum electrolysis operations. Cleaning processes and equipment have been installed at plants in Guizhou, Qinghai, Baiyin, Lanzhou, Qingtongxia, Shandong and Liangchen. Annual discharges of fluorides have - 47 - Table 3.27: POLLuTANT DISCHARGES FROM TYPICAL PROCESSES Differences from the inter. advanc. No. Tech. name of products Measure unit 1980 1985 1990 level 1. Aluminum oxide products by calcining 2. Aluminum oxide products by series process 3. Aluminum oxide productions by bayer process 4. Aluminum reduction in prebaked anode cell kg F/t Al 7.43 - 2.5-2.7 1 5. Aluminum reduction in top- electroconductive auto- baked anode cell kg F/t Al 20 20.00 20.00 6. Aluminum reduction in side- electroconductive auto- baked anode cell kg F/t Al 14.5 14.86 15-20 7. Copper smelting in flash furnace kg S02/t Cu - - 36.86 100-50 (ppm) 8. Copper smelting in elec- tric furnace kg S02/t Cu 705 620 243.10 1 9. Copper smelting in blast furnace kg SQ2/t Cu 11,457 12,870 830 10. Copper smelting in closed blast furnace kg SO2t Cu 9,211 8,245 10,422 11. Lead sintering & smelting in blast furnace kg S02/t Pb 266 112 110 12. Lead smelting in closed blast furnace kg S02/t Pb 32 31.8 30.66 13. Zinc smelting in vertical retort kg S02/t Cu 38 31.89 30.00 14. Zinc wet smelting kg S02/t Cu 230 222.87 200 been reduced by about half. (e) Wastewater. Reuse ratios have been increased from about 50 to 66 percent and discharges cleaned by the installation of new treatment plants. Water discharges meeting national standards are now up to 70 percent. (f) Particulates. Emissions are still high and only 93 percent of discharges now meet required standards. Further investment in cleaning equipment is necessary. - 48 - (g) Solid Wastes. These are a serious problem and consist of about 60 million tons annually of a wide variety of materials such as tailings, red mud, slags, coal dust and ashes. Only about 8 percent is utilized. (h) Restoration of Tailings Reservoirs. These contain about 1 billion tons of mine tailings and occupy over 8,000 hectares in addition to 400 hectares of agricultural land. The size is increasing each year. At ten enterprises, restoration has begun with planting and sowing, and some reuse of land for agriculture has been achieved-e.g., at Zhongtiaoshan mines, Xiaoguan bauxite mine, Yangjiazhangzi mines, Hongtoushan copper mines, Yunnan tin mines, and Xihuachan and Pangushan tungsten mines. 3.67 Overall, in the five years from 1985 to 1990, Y 660 million were spent on 2,743 environmental protection projects, including 888 relating to wastewater, 817 to gaseous emissions, 256 to waste slags, 282 to noise suppression, and 300 to a variety of other items. 3.68 In the next few years, even greater efforts will be needed to reduce pollutant emissions and clean up contaminated areas. Specific projects have been identified for completion but many are behind schedule, mainly due to lack of funds. These projects and many other smaller-scale measures should bring discharges of all the .main pollutants, excluding fluoride-containing gases of some aluminum plants, under good control by 1995. Although industry output is increasing, the quantities of pollutants should remain about the same. By 2000, further pollutant control will be established and it is expected that at least 90 percent of emissions will reach national standards. C. BUILDING MATERIALS Industry Profile and Products 3.69 The building material subsector includes manufacture of construction materials, nonmetallic mineral products and inorganic materials. The sector covers over one thousand products, made by more than 63,000 enterprises (both state and collectively owned, but excluding rural enterprises) employing around 10 million personnel, with a total output value of Y 97 billion. There are about 400 large-scale key enterprises. 3.70 The main products of the industry are cement, flat glass, ceramics, bricks, tiles and lime. China has become the largest producer in the world of most of these products. Processes include sintering, firing and drying in kilns or furnaces, in which fuel consumption is often high and emissions of CO2 and other pollutants are large. Production quantities in 1990 and 1991 were as follows: -49- 1990 1991 Cement 106 tons 209.70 252.61 Flat glass 106 cases La 80.67 87.12 Sanitary ware 106 pieces A - 18.90 Floor and wall tiles 106 m2 - 2.27 Bricks 109 pieces & 448.50 456.00 Roofing tiles 109 pieces & 48.20 49.40 Lime 106 tons 93.79 106.78 La 1 case = 50 kg. L 1 piece = 9 to 9.5 kg. & 1 standard brick is 240 x 115 x 53 mm. L 1 standard tile is 400 x 240 mm, thickness 10-17 mm. 3.71 With respect to cement, current capacity is 294 million tpy: the production of 252.6 million tons in 1991 puts China into first place in the world. Cement plants may be divided into two categories-large/medium-size cement plants and small-scale plants serving localized markets. There are 68 enterprises with large/medium-scale plants-average output 535,000 tpy-all using rotary kilns (total 208, of which 108 use the wet process) and with a total output of 36.8 million tons in 1990. Medium and small-scale plants down to county level-average output 62,000 tpy-produced 130 million tons and small-scale rural plants (TVEs, average output 13,000 tpy) contributed about 43 million tons. 3.72 Large/medium-scale plants use a variety of different technologies. Some plants have the latest precalciner systems, while others are still using the technologies of the 1920s or 1930s. For example, of the large/medium-size state-owned plants, 29 were built before 1950 and most of these have undergone renovation and reform since 1986. In terms of production methods, the following breakdown has been estimated: - 50 - Percent of Average fuel use capacity La kgCE/t clinker Total clinker production 100 190 Rotary kilns 29 199 of which, wet process 11 .210 Lepol kilns 2.5 160 dry process 16.5 185 of which, precalciner 4.5 105 standard dry process 4 285 with waste heat boiler 3 180 with cyclone preheater 2.5 120 with shaft preheater 2 138 Shaft kilns 71 186 of which, mechanized 60 165 ordinary shaft kilns 11 250 indigenous kilns 1 330 La Some minor discrepancies due to rounding. 3.73 Some of the precalciner kilns have only recently been commissioned and their output remains under full capacity. There are 16 production lines and their output was 8.44 million tons in 1990. 3.74 There are over 5,000 small-scale cement plants of which 400 are using small rotary kilns and the remainder use vertical shaft kilns. As indicated above, most cement is made in shaft kilns. Of the small-scale enterprises, around 3,000 use mechanized shaft kilns but almost 2,000 enterprises still use backward types of shaft kiln with no guarantee of cement quality and whose energy consumption is often high. These kilns are expected to be eliminated eventually but will remain an important means of production for many years. 3.75 With respect to flat glass, there are more than 130 furnaces with a capacity of 99.25 million cases. Within these, there are 23 float glass production lines, making about 40 percent of the glass output. Of the actual production of 80.67 million cases in 1990, 71.65 million were manufactured by large and medium-scale enterprises, almost 90 percent of the national output. There are three main production technologies employed: float glass, vertical draw and horizontal draw furnaces. Current production (1991) is predominantly from the first two types: - 51 - Type of Number of Est. output Typical furnace furnaces mill. cases size tons Float 23 32.3 (40%) 300-700 Vertical 71 40.3 (50%) <300 Horizontal 42 8.1 (10%) small 3.76 The float glass furnaces were built mostly in the late 1970s and achieve high quality production, while the vertical draw furnaces date from the 1950s and quality is lower. The horizontal draw furnaces are at a much lower technical level and are quite small: quality is often poor. 3.77 The ceramics categories include sanitary ware, floor and wall tiles. In 1991, there were 18.9 million pieces of sanitary ware made with a total weight of 0.17 million tons. Tile production was 1.23 million m of glazed wall tiles and 1.04 million M2 of floor tiles, making the total output 2.77 million mn2, the largest in the world. Currently there are over 1,000 continuous firing kilns in 797 ceramics enterprises in China, of which 13 are considered key enterprises with an output of 3.4 million pieces of sanitary ware, 0.1 million m' of glazed wall tiles and 0.035 million n2 of floor tiles. The larger plants use tunnel and roller hearth kilns. Most of the remaining production is carried out in over 800 kilns by small-scale enterprises with older equipment. Product quality varies considerably, with the newer larger plants producing higher quality items for hotel construction, for example, and for export. Production from the large number of small- scale enterprises is often poor quality and is tolerated in the marketplace as demand is so high. 3.78 The clay brick and tile industries represent about one quarter of the total output value and 40 percent of the energy consumption of the building materials sector. In 1990, the production of bricks reached 448.5 billion standard bricks and of roofing tiles, 48.2 billion pieces. Brick production was divided as follows: 3.79 This shows that brick production is dominated by the TVEs. Most of these operate small plants, although plant size is increasing and a number of brick kilns with capacity over 50 million bricks per year are now operated by TVEs. Tile production is also dominated by the TVEs who represent over 90 percent of the national output. In 1990, about 4.6 billion tiles were made by state-owned plants. In the clay brick and tile industry, the competition provided by TVE plants is particularly strong,assisted by such factors as the following: - 52 - Type/number of enterprises 109 Bricks Avg size 10'/yr Large/medium plants (11) 1.4 127 County and above (about 1,800) 78.0 43 Small TVE plants (over 90,000) 369.1 4 Total 448.5 (a) Favorable tax treatment. (b) No fees for clay utilization as TVE plants use "their own" land, mostly in agricultural areas. (c) There are no welfare facilities for personnel. (d) Managerial costs are lower. (e) Pensions are not provided. 3.80 The ability of state-owned plants to compete is thus restricted and it is estimated that about 10-15 percent of state-owned brick and tile capacity has been shut down in recent years. 3.81 China is a major producer of lime, the output being 93.79 million tons in 1990 and coal consumption 10.5 million TCE. There are about 5,000 enterprises making lime in China, with 85 percent operated by TVEs. The lime industry is very backward: many of the plants operate primitive equipment manually and make a low quality product. Mechanized shaft kilns are used in most state enterprises, with various types installed. Energy Use 3.82 The total energy consumption of the building material industry, including TVEs, amounted to 119.1 million TCE in 1990, about 12 percent of the national energy demand. Energy consumptions were: Coal 102.1 10 TCE Electricity 33.2 101 kWh Oil fuels 2.5 10' tons Total 119.1 10 TCE - 53 - A small amount of natural gas is also used but no consumption data are available. Including related activities, energy consumption for producing building materials was 122.91 million TCE. 3.83 Energy consumptions for different types of product were as follows: Energy use, 10 TCE Percent Bricks, tiles 54.37 45.7 Cement 40.71 34.2 Lime 10.48 8.8 Flat glass 3.13 2.6 All other 10.41 8.7 Total 119.10 100.0 Specific Energy Consumption Cement 3.84 Although there are some modern cement kilns operating at high efficiency in China, the typical energy efficiencies of manufacturing processes lag behind comparable plants in advanced countries. For example, the following figures may be quoted: Domestic industry Typical foreign energy use plant energy use kgCE/t clinker kgCE/t clinker Wet process kiln 180-230 180 Dry process kiln .140-180 115 Preheater kiln 110-165 105 Precalciner kiln 100-125 100 Vertical shaft kiln 100-250 98 3.85 The average fuel consumption for the cement industry in 1990 was almost 190 kgCE/t of clinker produced: the average electricity consumption is 99 kWh/t cement. - 54 - Flat Glass 3.86 The specific energy consumptions of the three main categories of glass furnace vary considerably between enterprises, with large plants usually more efficient than small ones. The float glass process is more energy efficient, typically consuming fuels and electricity equivalent to about 29 kg standard coal per case (0.58 TCE/t), large vertical furnaces about 33 kg (0.66 TCE/t), small vertical furnaces about 40 kg (0.8 TCE/t), and horizontal furnaces around 50 kg (1 TCE/t). In general terms, the energy consumption for manufacture of flat glass in China is about twice the level for advanced foreign countries, partly due to the small scale and also to the age of equipment and backward technology employed. Ceramics 3.87 The ceramic industries consumed 3.74 million TCE in 1991 (almost 3 percent of the building materials sector). Specific energy consumption amounts to 1.8 TCE/t for sanitary ware. For glazed tiles, energy consumption is 12.5 kgCE/m and for floor tiles, 10.5 kgCE/m. These figures are high compared with advanced countries, especially for tiles where the consumption is often at levels of 2-3 kgCE/mI. Clay Bricks and Tiles 3.88 The larger state-owned enterprises mostly use tunnel kilns and Hoffman type annular kilns, with energy consumptions in the region of 0.8 to 1 TCE per 10,000 bricks. Most plants operate continuously over a long time. Some tunnel kilns operate with full artificial drying, utilizing waste heat from the kiln combustion gases together with a small amount of supplementary firing. The smaller TVE plants also reach energy consumption figures of about 1 TCE/10,000 bricks, operating annular or Hoffman type brick kilns which are in almost universal use in the countryside. 3.89 Currently, many brick plants mix coal ash or coal dust with the raw materials before firing. In the brick kiln, the energy is released through "internal firing", reducing the amount of fuel added to the kiln separately. In extreme cases, there is no need to fire any coal separately and all the energy can be derived from wastes and low grade coals. More often, the amount of high grade coal fired in the kiln is reduced to say 200-300 kgCE/10,000 bricks. Lime 3.90 The lime industry in China remains relatively backward and energy efficiency is low. Typical coal use by small and old kilns is 180 kgCE/ton, and by mechanized shaft kilns say 135 kgCE/ton. As the basic process is simple, energy costs are a high proportion of total costs, around 50-60 percent, with large kilns usually the most efficient. There are mechanical vertical kilns with capacities of 30, 60, 90, 125 and 200 tpd in common use in the industry. - 55 - Energy Efficiency Trends 3.91 Data indicating trends in energy consumption for the building material industry are given in Table 3.28. These show an overall decrease in energy use amounting to about 3 percent per year from 1980 to 1990. The estimated saving in energy use amounts to almost 27 million TCE over the period 1980 to 1990 and this has been achieved by a wide range of measures in each part of the industry, such as better management, waste heat recovery, and adoption of more up to date equipment. 3.92 Energy consumption for cement manufacture has improved steadily. Figures for total energy consumption, including electricity, for the last 10 years are as follows: kgCE/t/t-clinker 1980 208.8 1981 206.0 1982 206.9 1983 204.8 1984 211.3 1985 208.1 1986 207.6 1987 202.3 1988 199.8 1989 200.4 1990 189.9 Table 3.28: HISTORICAL DATA ON ENERGY CONSUMpION DATA FOR TH BUILDING MATERIALS INDUSTRY TCE per 10,000 Energy saving Estimated energy yuan output % per year saving, 106 TCE 1980 27.26 - - 1981 26.09 4.29 2.28 1982 26.20 0.42 0.25 1983 24.87 5.08 3.26 1984 25.41 -2.17 -1.55 1985 23.87 6.06 5.40 1986 24.08 -0.92 -0.88 1987 23.04 4.36 4.69 1988 22.89 2.82 3.38 1989 21.42 4.33 5.39 1990 21.23 0.88 4.38 Note: Data calculated on the basis of constant 1980 yuan. - 56 - 3.93 These results have been achieved in a number of ways. Low efficiency plants have been shut down: for example, over 1,100 small-scale plants were closed after 1980. More use has been made of higher efficiency imported technology, such as dry process precalciner equipment from Japan, roller mills from Germany, raw meal homogenization equipment from Germany and Denmark, and grate coolers from the USA. 3.94 Energy efficiency data for the manufacture of flat glass show little improvement has been achieved since 1980: Unit energy consumption Year kgCE/case TCE/ton 1980 32.1 0.642 1981 32.2 0.644 1982 32.1 0.642 1983 31.5 0.630 1984 31.9 0.638 1985 32.9 0.658 1986 33.1 0.662 1987 35.4 0.708 1988 34.5 0.690 1989 31.4 0.628 1990 31.5 0.630 3.95 In the clay brick and tile industries, there has been a steady improvement in the energy use per unit of output. The performance of state-owned brick enterprises has shown a steady improvement as follows: Coal consumption kgCE/10,000 bricks 1983 1,180 1984 1,100 1985 955 1986 991 1987 933 1988 789 1989 834 1990 850 - 57 - Potential for Improvement Cement 3.96 The main type of kiln in use in large/medium-scale plants is the wet process kiln, of which there are about 108 (half the number of kilns in large/medium-size plants). Some of these were built in the 1940s but remain in operation. The wet process consumes more energy than the basic dry process, which itself has been improved by preheater and precalciner technologies. There is therefore a large potential for saving energy although the capital investment needed to upgrade cement manufacturing facilities will be substantial. There are four types of action needed: (a) New installations, involving the replacement of old wet process kilns by preheater and precalciner kilns. About 26 production lines using precalciner technology have already been built in China, with daily capacities from 700 to 4,000 tons of clinker. The investment required is typically Y 150 million for a precalciner kiln making 1,000 tpd clinker. (b) Conversion of wet process kilns to the semi-dry process. There are some pilot projects for this change (e.g., a semi-dry line with vacuum slurry filtration in Guangzhou). An investment of about Y 60 million is needed for modifications. (c) Rehabilitation of electricity generation equipment on old kilns. There are several old kilns built before 1949 which could be upgraded to increase cement production by 15 percent and electricity production from 100 kWh to 150 kWh/ton of clinker. The capital investment ranges from Y 30 to 100 million per kiln. The economic viability of rehabilitation requires careful checking as electricity generation by waste heat has not been found economic in western cement plants. (d) Improved operation of wet process kilns, to be achieved by a variety of smaller-scale measures. Energy consumption could be reduced from say 1,500 to 1,250 kcal/kg clinker by: (i) installation of chains in kilns (ii) use of higher heat resistant refractories (iii) increased use of slurry thinners (iv) coal burner modifications (v) coal grinding mill modifications A rough estimate of the investment per kiln is Y 5 million. 3.97 In the case of small-scale rotary kilns, some of these could be modified with the installation of 4 or 5 stage preheaters: a typical kiln-diameter 1.5 to 2 meters, - 58 - capacity 140-160 t/d-needs Y 18 million investment. Some small kilns with poor efficiency may be shut down. 3.98 With respect to shaft kilns, although these often show reasonably good energy efficiency, there are problems of maintaining good clinker quality. However, over the last ten years or so, various measures-including computer control-have been developed and applied to shaft kilns to reduce energy consumption and improve clinker quality. Experience in several plants shows that kiln fuel consumption can be reduced to 120 kgCE/t clinker (840 kcal/kg), which is close to the performance of a modern preheater kiln. Electricity use of 80-85 kWh/t cement is also achieved and this is a good performance. The cost of modifications varies for different plants but is typically Y 3 million. It is expected that around 3,000 mechanized shaft kilns will undergo progressive modifications and improvements over a period of several years. For the most primitive kilns, the best will be modified into mechanized kilns while many of the poorest ones will be shut down. 3.99 Lower energy consumption for clinker grinding is also a potential area for savings. Most of the current mills are low efficiency ball mills: total electricity use amounts to over 17,500 million kWh annually. Some measures to reduce this are: (a) installation of higher efficiency vertical and roller mills, (b) addition of pre-crushing stage and better air-separator, (c) use of higher quality abrasion resistant grinding media, (d) use of steel rods rather than balls, and (e) elimination of ball mills under 1.8 m diameter. 3.100 Another area for significant energy saving is the increased application of industrial wastes for cement and concrete manufacture. Specifically, industrial slags, fly ash and natural pozzolans could be used -in much greater quantities in conjunction with clinker to produce blended cements. Chinese cement specifications allow significant quantities of waste materials to be used: for blast furnace slag cement 20-70 percent of slag for pozzolan portland cement 20-40 percent pozzolans for portland fly ash cement 20-40 percent fly ash 3.101 The current production level of these blended cements is only 5-6 million tons (of which 4 million tons are made by large/medium-scale enterprises) out of over 250 million tons of cement. The potential saving of clinker by increased production of these three types of blended cement is probably 15-20 million tons annually in the short term-say within five years-equivalent to coal savings of say 4 million tpy. Over the long term, say by 2010, savings could easily be doubled. - 59 - 3.102 With respect to raw materials, coal shale and high carbon content fly ash are used in some plants to reduce overall coal consumption. Flat Glass 3.103 Although the energy consumption of this industry is only 3.13 million TCE per year, about 2.6 percent of the energy used for building materials, the energy costs tend to be high due to the need for high quality fuels (e.g., heavy oil, low ash coals and natural gas). There is therefore strong interest in energy efficiency and various modifications to plants are being adopted: (a) Installation of Float Glass Furnaces. At present, the technology for 500 tpd float glass production systems is imported from the USA at a cost of Y 350 million for a new installation and about Y 50 million for each revamp of an existing plant. The new system results in a decrease in energy consumption of almost 50 percent. (b) Modifications to vertical and horizontal draw furnaces-various techniques and improvements have been developed: (i) Insulation and sealing on the glass melting furnace. (ii) Modification of the furnace structure. (iii) Enhancement of heat recovery with improved regenerators. (iv) New types of oil burner and better combustion efficiency. (v) Higher efficiency of coal gas generation, including better automatic controls. (vi) Improved feeders for charging raw materials. (vii) Instrumentation for process and combustion control. (viii) Higher efficiency fans. 3.104 Overall, these types of improvement can give energy savings of 30-40 percent for existing furnaces. Ceramics 3.105 Energy consumption in this part of the sector is rather high and therefore a good potential for improvement clearly exists. Some typical measures already being adopted include: (a) Fuel Changes. Because coal and heavy oil are used extensively, indirect firing methods have been used to avoid pollutants affecting product quality. To improve heat transfer and to save energy, clean gas-such as purified coal gas and city gas-may sometimes be utilized. (b) Adoption of modem kiln technologies-such as the replacement of old downward draft and multi-pass kilns by roller hearth and shuttle kilns. - 60 - (c) Modifications for energy saving on existing kilns-consisting of a number of items which apply in many cases, such as new oil and gas burners, low mass kiln cars and accessories, better insulating materials for kilns, and heat recovery from exhaust gases to dry and preheat incoming materials. Clay Bricks and Tiles 3.106 Measures being taken to improve energy efficiency in the brick and tile industry range from increasing the utilization of carbon-containing wastes such as fly ashes and coal washery rejects-as already mentioned above-to the increased use of hollow bricks. In China, the proportion of hollow bricks remains about 0.3 percent of the national output, while other countries use hollow bricks extensively. Hollow bricks require less clay per unit volume, consume less fuel for firing in the kiln, are lighter and easier to handle during construction, and have superior insulating properties when used in typical buildings. A void space of say 30 percent is quite feasible without substantially altering the properties of the brick but saving about 20 to 25 percent of the energy needed in manufacturing. By ensuring proper quality control in manufacturing, large energy savings are thus possible in the clay brick industry. 3.107 In the building material industry in general, there are possibilities for using waste materials such as slags and fly ash to make lightweight bricks and panels for buildings. These can save large amounts of energy currently used to make clay bricks. The use of aerated concrete could also be encouraged. 3.108 With respect to the kilns and manufacturing process itself, better insulation to reduce heat losses and increased use of waste heat for artificial drying is being adopted in many plants. The internal structure of existing kilns should be checked to ensure that there is no bypassing of useful heat direct to the stack due to internal gas duct faults. Also, the continued use of small kilns with old and primitive technology must be questioned and the lowest efficiency plants should be shut down. Lime 3.109 The main thrust of efficiency improvements is to replace old backward kilns by mechanized kilns using modern technology. Other modifications being adopted include improved insulation and enhanced CO recovery for alternative uses. Management of operations needs upgrading too, with better day to day control of the size of limestone fed to the kiln, of the coal to limestone ratio, of the combustion air volume and the use of waste heat. Some economies in fuel costs are also achievable by utilizing coal washery wastes. It is estimated that energy savings of about 20 percent in terms of TCE/t product are possible using such simple and well known measures. - 61 - Projected Industry Outputs and Energy Consumption 3.110 There is a great demand for building materials of all types and the sector is expected to continue to show strong growth, generally faster than the average growth of the economy. Estimated outputs of key products are thus as follows: 1990 2000 2010 Cement 10 tons 210 460 500 Flat glass 10' cases 81 150 180 Floor and wall tiles million M2 227 300 350 Sanitary ware 106 tons 0.17 0.25 0.32 Bricks, tiles 10' pieces 497 650 700 Lime million t 94 180 220 3.111 While most products will increase in output, brick production is expected to slow down and decline as lighter and more efficient products replace conventional clay bricks. 3.112 In terms of energy use, the importance of the building material sector will also remain high. Assuming efforts are continued to improve energy efficiency, the forecasted energy consumption for the sector is as follows: (106 TCE) 1990 2000 2010 Cement 40.7 62.5 87.9 Flat glass 3.1 4.7 5.0 Bricks and tiles 54.4 70.0 70.0 Lime 10.5 18.0 21.0 All others 14.2 24.8 26.1 Intal 122 21=111 Generic Investment Options 3.113 The main opportunities for energy saving and reduction of greenhouse gas emissions are in the cement industry. Three typical items were chosen for detailed analysis as case studies: - 62 - (a) B1 Renovation of old cement plants by upgrading dry process kilns to preheater/precalciner systems. Much of the Chinese cement industry was established before 1950 and utilises obsolete equipment and outdated processes. With few exceptions even those plants using the dry process route have problems with old equipment, often operated long after the end of its economic life. This causes poor energy efficiencies and high levels of pollution, especially dust emissions. Profitabilities are often low. The renovation of typical dry process plants can therefore make a major contribution to the well-being of the industry, by replacing old dry kilns with modem preheater and precalciner kilns. (b) B2 Conversion from wet process to dry process kilns. More than half the kilns used in large and medium-scale enterprises are using the traditional wet process in which raw materials are mixed with water during the initial grinding stages and enter the kiln as a slurry. This water requires extra energy to evaporate during the clinkering step. Most modern plants use the dry process route in which the raw materials are processed without water addition, consuming much less energy per ton of cement produced. Conversion of wet process plants to the dry process offers the opportunity to save significant energy and to upgrade equipment generally. (c) B3 Renovation of small-scale vertical cement kilns. Out of a total cement production of about 250 million tons per year, 190 million tons are made in small-scale vertical kilns in over 5,000 plants. While many of the oldest and smallest plants with outdated equipment in poor condition will undoubtedly be shut down in the next few years, many plants will remain in operation to satisfy the growing market demand for cement. A large number of measures can be taken to upgrade the plants, including improvements to raw material preparation and mixing stages, adoption of modem instrumentation for better process control, and modernization of exhaust gas dust removal equipment. 3.114 Actual plant data were collected at representative cement plants for each option. Internal rates of return and paybacks, including construction time, were calculated as follows: - 63 - IRR % Payback, years B1 Renovation of dry kilns 16.9 11 B2 Wet to dry conversion 19.2 10 B3 Vertical kiln renovation 32.3 7 3.115 Based on the characteristics of the cement industry, the following forecasts were made for the business as usual and accelerated scenarios: 1990 2000 2010 B1 Renovation of dry kilns (million tpy cement): BAU Old kilns 6.0 3.0 0.0 Renov. kilns 0.0 3.0 6.0 Accel. Old kilns 6.0 0.0 0.0 Renov. kilns 0.0 6.0 6.0 B2 Wet to dry conversion (million tpy cement): BAU Wet process 22.0 22.0 11.0 Dry process 0.0 0.0 11.0 Accel. Wet process 22.0 22.0 0.0 Dry process 0.0 0.0 22.0 B3 Vertical kiln renovation (million tpy cement): BAU Old kilns 50.0 37.5 0.0 New kilns 0.0 12.5 50.0 Accel. Old kilns 50.0 32.5 0.0 New kilns 0.0 17.5 50.0 3.116 Further details of the assumptions made and the energy and emissions factors used in the calculations are given in Annex A. -64- Projected Impacts on Energy and Emissions 3.117 Using the forecasts given above, the expected impacts on energy use in the building materials sector were calculated as follows: Savings 10' Savings 10' TCE/yt by 2000 TCE/yr by 2010 BAU Accel. BAU Accel. B1 Renovation of dry kiln 376 752 752 752 B2 Wet to.dry conversion 0 0 865 1,730 B3 Vertical kiln renovation 776 1,086 3,103 3,103 3.118 Reductions in CO emissions were estimated as follows: CO reduction CO reduction J CPtpy by 2000 10 tpy by 2010 BAU Accel. BAU Accel. B1 Renov. of dry kilns 245 489 489 489 B2 Wet to dry conversion 0 0 560 1,120 B3 Vertical kiln renov. 380 531 1,518 1,518 Emissions 3.119 Major pollutants from the building material industries include dust, COj, nitrogen oxides and S02 from the manufacture of cement. Cement dust is often a highly visible pollution problem, and -greater attention needs to be paid to removal of particulates from stack exhausts using bag filters or electrostatic precipitators. The recovered dust can often be recycled to be mixed with the cement product. There are regulations to limit dust emissions but enforcement is sometimes lacking. 3.120 Carbon dioxide is produced as a part of the cement making process itself. A major component of the raw material is calcium carbonate which is heated in the kiln and CO is driven off in the reaction. The amount of CO released is about 1-1.1 tons per ton of clinker produced. Thus, in 1991, the production of clinker was 176.8 million tons, corresponding to a release of say 180 million tons of CO. - 65 - 3.121 The emission of nitrogen oxides varies according to combustion conditions. The following estimates have been made of NOx emissions for different types of kiln: Type of kiln NO ppm Average Maximum Precalciner 410 1,010 Preheater 500 1,260 Lepol (semi-wet) 270 900 Kiln generating elec. with waste heat 460 680 Wet process 550 1,120 Vertical shaft 200 n.a. At present, there are no limitations on NOx emissions in China. In Japan, for example, there are limits of 480 ppm for old and 250 ppm for new kilns. 3.122 The emission of SO from cement plants is not a major problem as the coal used is typically under 2 percent sulphur. In any case, much of the SO% is absorbed by the cement process materials. 3.123 Carbon monoxide release from conventional rotary kilns is normally not a problem as combustion is completed within the kiln. For vertical shaft kilns, however, there are sometimes problems due to incomplete combustion, resulting in some cases from inadequate supply of combustion air or poor distribution of the air in the shaft. CO can reach 2-3 percent in the exhaust gases, posing a safety and health hazard. 3.124 Pollutants from the glass industry consist of particulates from the raw materials and some gaseous emissions generated by the process. reactions. Many of the raw materials contain carbonates and sulphates, which lead to emissions of COQ2 and SO% respectively. NOx is generated in the combustion process in the melting furnace. As a guide, the emissions from a typical glass plant amount to 12.2 nm of waste gas per 100 gm of raw material batch, of which CO is 7.9 nm' (15.5 kg) and SO 0.5 nm' (1.42 kg). In addition, there are the emissions from the fuel to consider. As a guide, 1 nm of coal gas (heating value 1430 kcal/nm3) produces 2.05 nm3 exhaust gas of which 0.35 nm' is CO2. For heavy fuel oil burning (heating value 10,000 kcal/kg), the exhaust gas is about 13.5 nm3/kg fuel of which CO2 is 1.7 nm3. 3.125 Pollutants from the ceramics, clay brick and tile industries are all produced during fuel combustion; there are no significant effects from chemical reactions. In the case of the lime industry however, a large amount of C% is released as calcium carbonate decomposes. The quantity is about 1.18 tons of CO per ton of lime produced, including the CO2 from the fuel. - 66 - 3.126 For 1991, the total emission of CO% is thus estimated to have been 450 million tons, with contributions as indicated below. With respect to emission levels in the future, projected industry outputs and energy consumptions have been used to give the following forecasts for emissions of CO%: 1991 2000 2010 (million tons) Cement 177 260 329 Flat glass 7 9 12 Ceramics 7 10 13 Bricks and tiles 114 152 145 Lime 125 165 188 Others 20 24 28 T..lal &0ft 1 D. PAPER Industry Profile 3.127 The Chinese paper industry has grown steadily since 1949 at an average of 12.5 percent per year until it now produces over 17 million tons per year (1992), ranking fourth in the world. Production statistics for 1990 are as follows: Pulp 10 t 12.303 Paper and board 10' t 13.719 Number of grades 500 Products: Printing, writing paper % 27 Wrapping, packaging % 28 Household, sanitary .% 5 Board % 40 Further increases in paper and board production were seen in 1991 and 1992, to 14.28 and 17.25 million tons respectively. About 60 percent of the raw material is straw. 3.128 Most of the production is consumed domestically. Production of fine coated printing papers, cigarette paper, and various liner boards cannot meet demand and - 67 - therefore some products are imported. In 1990, for example, imports were 342,000 tons of pulp and 962,000 tons of paper and board: about 385,000 tons of paper and board products were exported. 3.129 Although the output of paper products is large on a world scale, per capita consumption is relatively low. The total world average figure was 44.8 kg per capita in 1990; for the USA it was 311.4, in Asia 19.8, and in China it was only 12.6 kg. 3.130 The industry in China comprises 5,360 paper-making enterprises with 1.25 million employees. While the average production of all paper mills is around 2,550 tons per year, the range of plant sizes is great. For example, 242 large and medium-size enterprises produced 5.067 million tons in 1990, 37 percent of the total national production: each of these plants produces over 10,000 tons annually. The industry is spread widely in China, with Shandong, Henan and Guangdong Provinces producing the largest tonnages. Of these, only Henan Province represents over 10 percent of the national output of pulp or paper (Table 3.29). 3.131 Production responsibilities in the industry are divided into several branches- such as plants under agencies for light Industry, forestry, agriculture, military, etc. Under the Ministry of Light Industry heading, there are 1,716 plants producing 56 percent of the national total. Energy Use 3.132 Of the total energy used in pulp and paper mills, electricity accounts for 30 percent and heat energy 70 percent. Electricity is used mainly in stock preparation and pulping for sawing and chipping wood, cutting straw, grinding and screening, as well as for operating motors on pumps and blowers. Fuels are used mainly for the production of steam, which in turn is used for electricity generation in some plants and process use in all plants, such as cooking, bleaching, black liquor evaporation and the drying of pulp and paper. 3.133 Table 3.30 shows the consumption of different energy forms. The industry consumed 12.25 million TCE of fuels and 11.98 billion kWh of electricity in 1990, a total of 16.94 million TCE. The installed power of electrical equipment in 1990 was estimated at 4,500 MW. The total energy consumed for paper-making was 2.5 percent of the national energy consumption: this is relatively low, the corresponding figure being about 10.5 percent in the USA and 5 percent in Japan. 3.134 The cost of energy for the paper industry is 10-15 percent of total manufacturing costs. This can of course vary widely for different enterprises in different regions and is generally based on the market price for energy. The paper industry purchases relatively little energy at "planned" state-controlled price levels. Typical figures for April 1992 were: - 68 - "Planned" prices Market prices Fuel oil (Y/ton) 290 480 Raw coal (Y/ton) 65 100-160 Electricity (Y/kWh) 0.16 0.25-0.60 3.135 With respect to electricity generation within the paper industry, only 60 mills have their own power stations out of over 5,000 enterprises in China. Typical boiler efficiencies are 80 to 90 percent. Some statistics for the equipment in use in 1990 is as follows: Number Capacity Boilers 152 5,300 t/h Steam Turbines: Back pressure, extraction (non condensing) 61 163 MW (40.0%) Extraction & condensing) 29 109 MW (46.4%) Condensing only 5 55 MW (13.6%) Total turbines 95 407 MW 3.136 The trend is toward the shutting down of ordinary condensing turbines and their replacement by extraction types. The size range of turbines is wide, although about 40 percent can be considered large: Size, MW Installed, MW Percent < 3 42.7 10.5 3-6 69.6 17.1 6 -12 139.6 34.3 > 12 155.1 38.1 - 69 - Table 3.29: PRODUCTION DISTRIBUTION FOR THE PAPER INDUSTRY, 1990 Province, PUI Paper and board municipality 10' t percent 10, t percent or region Beijing 132.0 1.07 254.1 1.85 Tianjin 166.3 1.35 267.5 1.95 Hebei 853.3 6.94 887.5 6.47 Shanxi 363.0 2.94 354.4 2.58 Neimenggu 135.1 1.10 135.9 0.99 Liaoning 774.9 6.30 775.0 5.65 Jilin 511.7 4.16 570.2 4.16 Heilongjiang 460.6 3.74 535.3 3.90 Shanghai 343.9 2.80 464.9 3.39 Jiangsu 663.2 5.39 748.1. 5.45 Zhejiang 332.2 2.70 785.2 5.72 Anhui 267.4 2.17 383.6 2.80 Fujian 538.1 4.37 520.9 3.80 Jiangxi 249.8 2.03 255.9 1.87 Shandong 964.0 7.84 1161.1 8.46 Henan 1476.7 12.00 1484.1 10.82 Hubei 349.8 2.84 430.3 3.14 Guangdong 966.1 7.85 1041.3 7.59 Guangxi 336.5 2.74 335.0 2.44 Hainan 3.6 0.03 4.0 0.03 Sichuan 816.1 6.63 774.4 5.64 Guizhou 66.0 0.54 62.1 0.45 Yunnan 163.6 1.33 154.3 1.12 Shaanxi 447.7 3.64 417.5 3.04 Gansu 105.2 0.86 102.4 0.75 Qinghai 4.0 0.03 7.1 0.05 Ningxia 70.4 0.57 66.8 0.49 Xinjiang 97.6 0.79 90.9 0.66 Subtotal 11.657.8 213.069.8 95 All others 302.7 2.46 71.9 0.52 Net imports 342.0 2.78 577.0 4.21 Total 12,302.5 100.00 13.718.7 .LQQQ 3.137 Units with a capacity of 6 MW or higher are normally found in larger enterprises built during the Sixth Five-Year Plan. Those under 3 MW were typically installed during the Seventh Five-Year Plan and many are associated with cogeneration systems. Table 3.30: ENERGY CONSUMPTION DATA FOR THE PULP AND PAPER SECIOR, 1990 Energy Consumed Output of paper Fbels 10'CE Eectricity Total energy products Subsector 10' T Steam Coking Nat. Total coal coal Coke Oil Gas Other Fluel 10' kWh 10' TCE 10' TCE Percent Light industry plants 7,710.0 7.675 0.000 0.000 0.403 0.027 0.000 8.105 7.92 3.105 11.210 66.16 Small scale farFM 380.0 0.395 0.000 0.000 0.021 0.000 0.000 0.416 0.41 0.161 0.577 3.40 townships 5,230.0 3.125 0.000 0.000 0.164 0.000 0.000 3.289 3.22 1.262 4.551 26.86 Small/forestry 100.0. 0.104 0.000 0.000 0.005 0.000 0.000 0.109 0.11 0.043 0.152 0.90 All other 300.0 0.313 0.000 0.000 0.016 0.000 0.000 0.329 0.32 0.125 0.454 2.68 Totals 13,720.0 11.612 0.000 0.000 0.609 0.027 0.000 12.248 11.980 4.696 16.944 100.00 percentages 68.53 0.00 0.00 3.59 0.16 0.00 72.28 - 27.72 100.00 - 71 - Specific Energy Consumption 3.138 The specific energy consumption differs greatly from enterprise to enterprise, depending on the scale of operation, the materials used for fibre, the specific processes employed, product grades and quality, and management. Most pulp producers in China are integrated, with few producing only pulp for the market. Many paper mills -especially smaller ones in cities-purchase pulp or use waste paper. Township paper- making enterprises mainly produce lime straw pulp to make straw board or use waste paper to make packaging materials. Paper mills under forestry agencies mainly produce wood-based unbleached pulp and board. Enterprises under the Ministry of Agriculture and within the military system are straw based integrated paper mills. For the same grade of paper or board, the unit energy consumption of plants under the Ministry of Light Industry is generally lower than plants under other agencies. 3.139 The average unit consumption was 1.23 TCE per ton of product: Energy inc. Unit energy Output electricity consumption 10, t 103 TCE TCE/t Light industry 7,710 11,200 1.45 Agriculture: Farm 380 576 1.52 Township 5,230 4,557 0.87 Forestry 100 152 1.52 Army and other 300 457 1.51 All China 13,720 16,942 1.23 The energy consumption for the paper industry in 1990 represents about 4.6 TCE per Y 10,000 output value. 3.140 Typical energy consumptions for certain activities in plants under the Ministry of Light Industry are as follows: - 72 - Product Units 1985 1988 1989 1990 Heat Energy: Pulp TCE/t pulp 0.64 0.62 0.68 Paper, board TCE/t product 0.99 0.92 0.87 Electricity: Mechamcal Wood pulp kWh/t 1,522 1,588 1,560 1,566 Newsprint kWh/t 556 565 568 583 These figures show fluctuations over time, although the general trend seems to be down for thermal energy and up for electricity. 3.141 In integrated pulp and paper mills, the average energy consumption was 1.55 TCE per ton of paper, based on 1990 data for 870 enterprises. The cost of energy for these plants represents 10 to 15 percent of the total production cost. These larger plants normally use medium pressure boilers with efficiencies in the region of 80 percent, while smaller plants have only low pressure boilers with efficiencies as low as 50-60 percent. The total steam raising capacity in the paper industry is around 14,000 t/h. 3.142 The efficiency of electricity generation varies considerably. For 42 plants investigated, the following data were obtained: Energy consumption, kg CE/kWh No. of plants < 0.404 15 0.404-0.600 12 > 0.600 15 Min 0.155/ avg 0.40/ max 0.70 42 Of the figures given for energy consumption, about 15-25 percent of this is for internal power plant use. Energy Efficiency Trends 3.143 With respect to changes in energy efficiency, the industry has paid increasing attention to all aspects of operations. In addition to strengthening enterprise management and training personnel, the following measures have been adopted: - 73 - (a) Increased Application of Cogeneration. Installed capacity MW in 1990, with self-generated electricity, totalling 1.65 billion kWh. However, only 60 mills out of about 5,000 have their own cogeneration equipment, although essentially all newly built medium and large enterprises now include cogeneration systems. (b) Increased Black Liquor Recovery. Energy recovery from black liquor is now equivalent to about 200,000 TCE annually. (c) Recovery of Waste Heat. Including heat from paper machine hoods. (d) Use of Wood Wastes. These include bark, sawdust, wood chips and straw dust, which are now being used in waste boilers. (e) Increased Instrumentation. This includes computer control of operations such as rapid cooking of straw at low temperatures, and on-line paper moisture measurement. (f) Various Process Improvements. These include recycling white water, reducing the moisture content of formed paper entering the drying section, condensate recycle from cylinder dryers, and greater use of continuous digesters. 3.144 The results of such activities are suggested by the following figures for plants under the Ministry of Light Industry: 1985 1990 Growth %/y La Output value: Y 109 (1990) 16.69 24.56 8.03 Enterprises 1,616 1,716 Production (million tons) 6.59 7.71 Energy consumption (106 TCE) 10.01 11.20 2.27 Energy/output TCE/Y 10,000 6.00 4.60 TCE/t 1.52 1.45 La Energy growth %/Output growth % = 0.28. - 74 - 3.145 The data suggest the savings are about 5.3 percent per year over the 5 years. However, although useful savings have been achieved, some of the improvement is due to changes in the product structure in the industry. For example, letter press paper has been upgraded to offset paper quality by many enterprises, and ordinary newsprint to high grade offset newsprint. Higher value-added products such as kraft liner board and white board are making up a greater proportion of output. These changes lead to a higher output value with relatively modest energy increases. In addition, there have been increases in the use of imported pulp and recycled paper, thus decreasing the energy needs for pulp-making. Potential for Improvement 3.146 Apart from potential management deficiencies, there are five major reasons for high energy consumption by the Chinese paper industry: (a) Structure of Energy Consumption. In China, coal represents about 95 percent of fuel use while the paper industry in many western countries uses a high proportion of natural gas. (b) Raw Materials. In 1990, wood fiber made up only 14.6 percent of raw material in China, while in other countries it is generally 90 percent or more. Straw is the main source of fibers for paper production and there is therefore very little wood waste or bark that can be used as a fuel. On the contrary, there are large quantities of straw and reed dust that are not utilized. It is believed there are only very few waste dust boilers in China. (c) Black Liquor Recovery. Although this is increasing, recovery remains low. In 1990, there were 57 black liquor recovery systems in service with a capacity of 0.45 million tons alkali recovery per year: the actual amount recovered amounted to 0.35 million tons. The efficiency of recovery is about 80-90 percent in China compared with typical levels of 90-95 percent overseas. Of the 57 mills with black liquor recovery, only 8 have cogeneration systems, the remainder simply make low pressure steam for heating. The concentration of solids in black liquor from straw pulping is lower than for wood pulp processing, thus the energy requirement for alkali recovery is higher. (d) Enterprise Scale. The average production of Chinese paper enterprises is 2,550 tpy, and only 37 percent of annual production is made by plants with capacities in excess of 10,000 tpy. Out of over 5,000 plants, only about 200 may be classified as medium or large. Overseas, plant sizes are usually much greater: typically, paper and board production of enterprises is 60,000 tpy. The economic application of black liquor recovery and cogeneration systems is therefore less often found in China. (e) Equipment Technology. This tends to be somewhat backward in China and equipment at most medium and large enterprises can be considered - 75 - equivalent to international standards of the 1960s and 1970s. Paper machines in China are usually under 2 meters in width and run at speeds of 200 m/min or less, while corresponding machines in western plants are often 5-10 meters in width and run at 800-1200 m/min. 3.147 Some potential changes which should lead to lower energy use include higher levels of black liquor recovery and cogeneration, as already indicated. In addition, improvements in digester technologies are being widely adopted, such as continuous systems which replace both spherical and vertical batch digesters. Increased water recycling is also being encouraged, including more condensate recovery from paper machine drying cylinders (currently estimated at only 50 percent). Greater use of wastes such as bark, wood chips and straw dust is also expected. The increased use of waste paper as a raw material could also lower overall energy consumption. Currently, only 27 percent of paper raw material is made up from waste paper and it is thought that this could be increased to about 30-35 percent in the short to medium term. 3.148 Other technical measures include improvements that are not exclusive to the paper industry, such as improved boiler operations, the use of variable speed electric motor drives, elimination of condensing turbines in electricity production, replacing low efficiency blowers and pumps, improving steam system insulation, installing more steam traps, and replacing defective traps more frequently. 3.149 Longer-term technological developments are expected to concentrate on long fiber pulps and the adoption of more wood-based pulping. Larger plant sizes can be expected, with new wood pulp mills in the range of 50,000 tpy capacity or more, and nonwood pulp mills to 17,000 tpy or above. 3.150 With respect to environmental protection, reduction in waste water discharges and increased water recycling will be pursued. Higher levels of black liquor processing and alkali recovery will help, as will higher levels of waste water treatment. Lower energy consumption in general will lead to lower emissions to atmosphere of CO, SO2 and particulates. Projected Industry Outputs and Energy Consumption 3.151 It is expected that the annual growth rate of the paper industry will be a little higher than the overall growth rate of the economy. It is also anticipated that the quality of most major products will continue to improve to world standards. The following figures for output and corresponding energy use and emissions have been estimated, assuming the achievement of higher energy efficiency and greater attention to pollutant emissions: Generic Investment Options 3.152 Based on a review of the paper industry and likely changes in technologies used, two case studies were developed for the paper industry: - 76 - 1990 1995 2000 2010 Output 106 tons 13.72 20.15 25.00 35.00 Energy Fuels 106 TCE 12.25 16.73 22.04 22.75 Electricity 10' kWh 11.98 16.70 22.27 23.10 106 TCE eq 4.79 6.68 8.91 9.24 Total 106 TCE 17.04 23.41 0.95 31.99 Specific e.c. TCE/ton 1.24 1.16 1.07 0.91 Emissions: CO2 10 tons 2,340 3,194 4,210 4,345 S02 101 tons 296 360 445 428 SO2removal % 10 20 25 30 (a) Li Black Liquor Recovery In pulp plants, raw materials are treated with caustic soda as an essential first step. Much of the spent caustic is discharged by Chinese plants to local rivers and is responsible for 80 percent of the organic pollutant load in paper industry effluents. Processing of black liquor is well established in most developed countries and is used to reduce pollution emissions, to recover caustic soda for reuse in the pulping process, and to recover energy by burning combustible materials in the black liquor itself. (b) L2 Cogeneration The paper industry is a large consumer of both electricity and steam. Most paper mills in China generate their own steam in boilers which operate at low pressures and moderate efficiencies. Some of the larger enterprises generate their own electricity, also using boilers to produce steam at relatively low pressure and at efficiencies of 50-60 percent. Increased adoption of cogeneration systems in the paper industry will permit much higher generation efficiencies for both steam and electricity, partly through the application of a process that is inherently more efficient than separate generation and partly by the effect of replacing old and outdated equipment. 3.153 As indicated previously, these technologies have already been adopted by some paper plants and therefore it is useful-based on actual plant experiences-to determine their economic viabilities, to assess impacts on industry energy consumption and - 77 - greenhouse gas emissions from their further adoption, and to estimate the potential energy and pollution benefits from accelerating the present rate of adoption of the technologies. 3.154 The details of the two case studies are reported elsewhere. Analyses gave the following internal rates of return and paybacks (including construction times): IRR % Payback, years Li Black liquor recovery 24.6 5 L2 Cogeneration 24.5 9 3.155 Based on the characteristics of the sector, the following forecasts of adoption of these technologies were made: 1990 2000 2010 L1 Black liquor recovery (10 tpy pulping capacity): BAU Without BL recovery 1.2 0.8 0.0 With BL recovery 0.0 0.4 1.2 Accel. Without BL recovery 1.2 0.6 0.0 with BL recovery 0.0 0.6 1.2 L2 Cogeneration (10' tpy paper products): BAU Plants without cogeneration 2.4 1.9 0.0 Plants with cogeneration 0.0 0.5 2.4 Accel. Plants without cogeneration 2.4 1.4 0.0 Plants with cogeneration 0.0 1.0 2.4 Details of the assumptions made including energy and emissions factors are given in Appendix A. - 78 - Projected Impacts on Energy and Emissions 3.156 Based on the above forecasts, the expected impacts on the energy consumption of the paper sector are as follows: Savings 1? Savings 1P TCE/yr by 2000 TCE/vt by 2010 BAU Accel. BAU Accel. Li Black 1. recovery 74 110 221 221 L2 Cogeneration 17 33 79 79 Reductions in CO2 emissions were forecast as follows: C02 reduction C02 reduction HP 1Ity by 2000 1 tJ y by 2010 BAU Accel. BAU Accel. Li Black 1. recovery 253 379 759 759 L2 Cogeneration 11 21 50 50 Emissions 3.157 The paper industry releases air pollutants through the combustion of fuels in boilers, in common with most manufacturing operations, but the major pollution impact of the industry is on water pollution. Spent chemicals such as caustic soda containing organic contaminants are discharged to local rivers and lakes. Increasing the recovery of caustic soda from black liquor will thus contribute significantly to reducing local water pollution. 3.158 Estimates of the current air pollutant emissions and forecasts through to 2010 are as follows: - 79 - 1990 1995 2000 2010 Industry output 106 tons 13.72 20.15 29.00 35.00 Emissions: CO2 101 tons 2,340 3,194 4,210 4,345 SO2 103 tons 296 360 445 428 SO removal % 10 20 25 30 3.159 The most important measures to reduce air pollutant emissions are to improve combustion efficiency on existing boilers and to ensure that new boiler designs adopt good modem practice. Other pollutants are released from associated operations such as lime kilns and digesters: good management is needed to keep operating practices at the highest levels, and to ensure that proper environmental protection equipment is fitted (e.g., dust collectors on lime kilns and boilers). E. TEILES Industry Profile and Products 3.160 The textile industry may be divided into "upstream", "midstream" and "downstream", according to the process route from fibers to final products: (a) Upstream Covering raw fibre production, both natural and synthetic. Natural fibers include cotton, silk and wool, while synthetic fibers cover a wide range of materials such as viscose, acetate, polyester, nylon and acrylic materials. Preparation of natural fibers is classified as an agricultural activity and that of chemical fibers as industrial. (b) Midstream. Processing of fibers into fabrics. This may be further divided into the manufacture of cotton, wool, silk and artificial fibers, including spinning, weaving, knitting, bleaching, dyeing, printing and finishing. These are the main activities of the textile industry. (c) Downstream. Preparation of final products from fabrics. This covers the making of garments, footwear and headwear, and the manufacture of curtains, carpets and industrial textiles. 3.161 The textile industry in China is amongst the largest in the world, with the number of cotton yarn spinning spindles ranked first, of wool spinning spindles second and chemical fibre output fourth. About 0.4 million tons of yarns and silks and 6 billion meters of fabrics are exported annually. - 80 - 3.162 In 1990, there were 11,223 enterprises reporting to the Ministry of Textile Industry with an output value of Y 198 billion. The total employed was 7.46 million. These figures do not include establishments operated by TVEs which are very numerous but are often quite small plants. Plants under the Ministry can be divided as follows: Number Percent Large 472 4.2 Medium 1,251 11.1 Small 9,500 84.7 112 2 1Qt 3.163 For the record, the classification is made as follows: Large Medium Small Cotton manufact. > 100,000 50-100,000 < 50,000 spindles Dyeing, printing > 100 50-100 < 50 million M/y Chemical fiber > 8,000 3-8,000 < 6,000 tpy staples 3.164 In terms of numbers, the large and medium plants represent about 15 percent of the sector and provide about two thirds of the output value of the textiles industry. 3.165 Enterprises are located all over China, although one third are in the east: Number Percent North 1,442 12.9 Northeast 1,458 13.0 East 3,804 33.9 Middle, south 2,724 24.3 Southwest 1,094 9.7 Northwest 701 6.2 1L,223 1=0 - 81 - 3.166 Production statistics for the textile industry, excluding TVE plants, are as follows for 1985-90: 1985 1986 1987 1988 1989 1990 Number of enterprises 14,476 14 600 14 701 14 585 10 913 11 223 Emplots(ya end) 1V 6.69 1.00 1.36 1.68 1.35 1.46 Production data Chemical fiber 10' t 948 1 017 1,175 1,301 1,478 1,650 Cotton yarn 1 t 3.53 Y.98 4.37 4.66 4.77 4.62 Cotton fabric 10 14.67 16.47 17.31 18.79 18.92 18.80 Printed/dved fabric 1 7.53 7.95 8.31 9.52 8.70 9.10 Woolen fabric 1 ma 218.16 251.86 265.40 286.11 279.60 295.00 Silk 10 t 42.20 47.20 51.90 51.00 52.20 56.50 Garments 109 pieces 3.0 Footwear 1 pairs 765 Headwear 1 pieces 117 /a Standard width of fabric is 1 meter. 3.167 The following data are available on capacities in 1990: Capacity Chemical fibers 2.02 10 tpy Cotton yarn spinning 38.82 10' spindles Cotton fabric weaving and knitting 0.86 10' looms Wool yard spinning 2.65 10' spindles Wool fabric weaving and knitting 0.33 10' looms Silk reels 2.4 10' ends Silk textile weaving and knitting 0.18 10' looms Cotton fabric printing and dyeing 13.2 10' metersly 3.168 The range of products produced in the Chinese textile industry is considered limited compared with developed countries. There are also problems of variability in quality and low added value. Textile exports from China achieve a value of about $ 5000 per ton while exports from developed countries are valued at twice that amount. For the world industry on average, the consumption of chemical fibers for textile production amounts to 46 percent while China uses only 20 percent. - 82 - 3.169 The structure of textile products lags behind many developed countries, as the following table of relative production values: Curtains, Industrial wall coverings uses-belts, Fabrics for carpets, and tires, filters, (percent) garments automotive use etc. USA 40 37 23 W. Europe 50 34 16 Japan 35 30 35 China 75 15 10 3.170 The textile industry also suffers from old and outdated equipment, with about one third of the cotton manufacturing machinery having a life of 30 years or more. Much Chinese machinery is still at an early stage of development with respect to electronic control. It is believed that about half the textile machinery built today in China is only at the international level of the 1960s. For example, open end spinning machines, shuttleless looms and rotary screen printing machines represent 3, 3 and 10 percent of the market in China compared with 13, 15 and 50 percent in the world market. 3.171 Labor productivity is also low in China. For example, 30 man-hours are needed to produce one ton of yarn, 3.5 times as much as Japan today and about the same as Japan in the mid-1960s. 3.172 The textile industry is however modernizing as it expands to meet growing domestic and international demands. Production is expected to increase by 0.45 million tpy by 1995 compared with 1990 and by a further 1 million tpy by 2000. The proportion of garments, knitted goods, decorative and industrial textiles will increase. Quality is expected to increase, as will the diversity of products, to meet market requirements. Energy Use 3.173 In 1990, the resources consumed by the textile industry were as follows: - 83 - Consumption TCE Percent Coal 15.21 10' t 15.59 56.4 Fuel oil 0.48 106 t 0.69 2.5 Electricity La 23.3 10' kWh 9.65 34.9 Purchased steam 47,940 10' kJ 1.66 6.0 Coal gas 102 10' M3 0.06 0.2 22Ji. 100& La Under 3 percent self generated, which is included in the figure quoted for kWh (fuels for self generation are included in the coal, oil, etc.). 3.174 The energy consumption may be allocated to various parts of the industry as follows: Upstream Midstream Downstream Misc. chem. fibers textiles garments etc. uses Total Coal 10' t 2.63 11.56 0.31 0.71 15.21 Fuel oil 10 t 0.09 0.36 0.01 0.02 0.48 Electricity 10' kWh 4.1 18.2 0.27 0.73 23.3 Purch. steam 109 kJ 8,450 38,450 100 850 47,940 Coal gas 10 m - 110 - 10 120 3.175 A complete breakdown of energy consumption by the Chinese textile industry is given in Table 3.31. 3.176 With regard to energy prices, typical regional prices for electricity are: North China 0.25 to 0.30 Y/kWh East China 0.40 to 0.50 South China 0.60 to 0.80 3.177 As a percentage of total manufacturing cost, including raw materials, the cost of energy is about 3.5 to 5 percent for textile production, 4.5 to 6.5 percent for chemical fibre production and 5 to 6 percent for dyeing and printing. - 84 - Specific Energy Consumption 3.178 In 1990, unit energy consumptions were as follows: Electricity Fuels kWh/t TCE/t Synthetics Viscose staple fibers 1,999 2.28 Viscose filament yarns 10,439 9.17 Nylon fibers 3,564 1.47 Polyester staples 749 0.72 Acrylic fibers 1,540 4.99 Vinylon 2,291 2.34 Natural Cotton yarns 2,129 n.a. Cotton fabrics 25 n.a. Dyed and printed fabrics n.a. 43 kgCE/100 m Natural silk n.a. 1,680 Silk fabrics 51 kWh/100 m n.a. Energy Efficiency Trends 3.179 Based on constant 1980 yuan, the ratio of coal use to output value dropped about 16 percent from 1980 to 1990: Output value Energy use Ratio 101 RMB 106 TCE TCE/10,000 RMB 1980 66.6 16.31 2.45 1990 136.2 27.65 2.03 3.180 It is estimated that the annual energy savings amount to 3.4 percent. This has been achieved by improving management and by investments in new equipment and technologies. For example, textile enterprises have made strong efforts to introduce good energy management practices throughout the industry, including better metering and reporting, better data analysis, improved scheduling of operations, training programs on Table 3.31: ENERGY CONSUMMION IN THE TEXTILE INDUSTRY DATA FOR 1990 EnemRy Consumed . Fuel (10' Tsc equiv.) Electricity Standard Total Output Coal Oil Gas Steam Total 10P 10' Energy Sector/Subsector & Unit 10' T 10' T 10' M' 10' Kj 10' Tsc KWH Tsc 10' Tsc Chemical 1.65 * 0.09 8,450 Fibers 10' T 2.63 (0.13) (0.288) 3.0048 4,192 1,593 4.747 Cotton Yarn/ 4.62 * 0.109 0.019 14,450 Fabric 10' T 4.13 (0.155) (0.0006) (0.493) 4.784 13,510 5,458 10.242 Wool Yam/ 295 * 0.049 0.00263 5,034 Fabric 10' * 1.54 (0.070) (0.0009) (0.171) 1.781 1,173 413 2.194 Printing/ 9.10 * 0.035 0.039 14,194 Dyeing 10' M 2.04 (0.121) (0.0317) (0.484) 2.676 1,008 407 3.083 m Silk 1.70 * 0.061 0.00176 1,771 Textiles 10' M 1.44 (0.087) (0.0006) (0.060) 1.587 1,030 416 2.003 Garments 8 * 0.011 Footwear 10' Headwear pcs 0.31 (0.015) 0.321 278 112 0.433 0.075 0.00761 4,040 Others 3.12 (0.107) (0.0027) (0.187) 8.866 2,109 852 3.897 15.21 0.48 0.12 47,940 Total (15.21) (0.685) (0.0428) (1.635) 17.572 23,300 9,413 26.985 Conversion Factor 1 1.4286 0.3571 0.03412 0.404 ( ) Converted to Standard Coal. - 86 - energy saving and on the technologies used by the industry. Systems of incentives and penalties have been introduced, and awareness campaigns conducted. Table 3.32: ENERGY CONSERVATION MEASURES Investment Energy for unit Coal Raw Electric- savinZ energy Return equiv. coal ity Oil value saving period Projects (Y 100 m) (10kt) (10kt) (100 GWh) (10 k) (Y 100 m) (me) (Year) Cogeneration (supply) 70 950 1,330 - - 14.25 737 4.91 New type of burner for coal powder boiler 1.35 139 174 - 10.8 2.9 97 0.47 Boiler scaling for heat protection 2.4 85 119 - - 1.28 282 1.88 Water pumper speed adjusting 10 120 30 - 7.S 33 1.33 Comprehensive innovation for unit of 0.2 MkW is 220 308 . 3.3 622 435 Washing steam.condenser by rubble ball 0.5 160 224 - 2.4 31 0.21 Motor innovation of magnetic slot 0.08 15.2 - 3.8 - 0.95 52.6 0.084 Surplus heat recycling of pipe heat exchanging 8.2 403 465 17.79 9.46 230 0.87 Microcomputer online analysis for energy loss 4 350 490 - 5.25 114 0.76 Improving for nonpower compensation 12 80 - 20 5 1500 2.4 Innovation on electricity distribution of urban area 22.8 348 - 87 - 21.75 625 1.05 Total 146.33 2,870.2 3.9S0 H, 10.3 74.04 78[ 194 Note: (1) Thermal supply is not included in thermal power cogeneration. (2) Energy prices apply the shadow price: Y 150/tce, Y 0.2S/kWh, Y 930/t. Investments are calculated with fixed prices. (3) The investments and energy saving are forecasted based on the average results of the complete projects. 3.181 With respect to investments for energy efficiency in the period 1980-90, over 2200 projects were authorized with a total investment of over Y 700 million, with anticipated energy savings of 1.2 million TCE/yr. Examples of projects are: (a) Cogeneration. One hundred one projects built or under construction for a total investment of over Y 300 million. Anticipated savings are 0.6 million TCE/yr and electricity generation capacity will total 0.4 million kW. (b) Steam distribution. More than 600 projects have been completed or scheduled to update old steam systems, with a total investment of Y 200 million. (c) Air conditioning. Typically, this requires 15 to 20 percent of site energy consumption for dust removal and the control of temperature and humidity. Various improvements are being made, such as blower renewal, lower water pumping rates, variable speed operation, LiBr systems, and new air conditioners. - 87 - (d) Motors and transformers. These are being replaced with modem equipment to achieve lower power factors and lower electricity consumption. High efficiency motors are used in most spinning machines. (e) Increased use of coal. Energy distribution by hot air and hot oil, heated by coal fired equipment, is being used to replace electricity or fuel oil systems. Other measures include attention to water consumption and to routine maintenance. Potential for Improvements in Energy Efficiency 3.182 The potential for energy efficiency improvement is significant. There are, of course, many factors such as process route, size of produqtion facilities, range of products, and climate. However, the specific energy consumption for chemical fibre production is generally higher than in developed countries, although for natural products, it is usually lower. Average figures for the Chinese industry and typical developed country data are as follows: China Typical overseas Electricity Fuels Electricity Fuels kWh/t TCE/t kWh/t TCE/t Viscose staple fibers 1,999 2.28 1,020/1,470 0.82/1.28 Viscose filament fibers 10,439 9.17 3,700 4.08 Polyester staples 749 0.72 586 0.8 Polyester filaments 2,678 0.63 830/1,030 0.4/1.28 Nylon fibers 3,564 1.47 4,900 2.0 Acrylic fibers 1,540 4.99 1,000 3.0 Vinylon 2,291 2.34 2,100 1.2 Cotton yarns 2,129 - 3,458 Cotton fabrics 25 kWh/100 m - 39 kWh/100 m Dyed, printed fabrics - 43 kg/100 m 50 kgCE/100 m 3.183 Energy consumptions in developed countries have risen in recent years-as their textile industries have adopted higher speed machines and automated operations to save manpower and cut costs. Also, many products are made in small batches with various specifications to meet rapidly changing markets. Standards for space conditioning and dust removal are generally higher than in China (e.g., 30 to 50 percent of site energy use versus 15 to 20 percent in China). These factors add to energy use in the developed countries, although this has been offset to a large extent in the chemical fibers industries by introduction of energy efficient technologies in large-scale chemical plants. - 88 - 3.184 For the future, savings in the Chinese textile industry are expected to be achieved by improvements in processes and better management. Some typical technical renovations which are expected to be accomplished by 2000 are as follows: Investment Energy saving Item Capacity 10' RMB 102 TCE/y Cogeneration 0.4 106 kWh 1.0 1,000 Boiler renewal 12,000 t steam/h 1.2 900 Motor renewal 0.3 106 kWh 0.2 40 Air conditioning improvement 3,000 sets 0.2 1,200 Chiller improv. 200 sets 0.1 60 Water supply 200 sets 0.2 600 Others 0.6 280 Projected Industry Outputs and Energy Consumption 3.185 The share of chemical fibers in the industry output is expected to grow from 20 percent in 1990 to 33 percent in 1995 and 39 percent in 2000. It is expected that more productive machinery will be increasingly adopted-e.g., open-end spinning machines to 0.6 million and shuttleless looms to say 5 to 6 percent. Although this may increase energy consumption in the industry, the output will be increased more and the specific energy consumption will be lower. Electronic controls will be more widely used. The products of the industry will show more variety and will have a higher value added. 3.186 Forecasts of industry output have been made as follows: 1995 2000 2010 Total output value 196 269 350 10' RMB Export value 15 20 35 10' USD Processed fibers 7.8 9.0 11.0 10 tons Chemical fibers 2.1 3.0 5.0 10' tons Cotton yarns 5.66 6.47 7.27 10' tons Wool fabrics 320 10' meters Silk fabrics 2.5 10' meters Garments 5.0 10' pieces - 89 - 3.187 Forecasts of industry energy consumption are as follows: (106 TCE) 1990 1995 2000 2010 Chemical fiber production 4.75 5.94 8.55 10.45 Textile production 20.53 30.80 36.96 48.25 Garments, footwear,headwear 0.45 0.72 1.00 1.06 Other production 1.47 2.20 2.64 2.94 Ioal 2720 39.6 49.J f20& Generic Investment Options 3.188 Three measures were selected for detailed examination as case studies, each with good potential for wide replication in the textiles industry: (a) Ti Cogeneration. The textiles industry is similar in many ways to the paper industry in that it uses large amounts of both electricity and steam. While essentially all plants produce their own steam, only a few generate their own electricity. The on-site generation of both steam and electricity in modem cogeneration systems will raise energy efficiency, and thus reduce greenhouse gas emissions, by replacing old and obsolete equipment and by introducing a process that is inherently more efficient than separate generation. (b) I2 Caustic soda recovery. Caustic soda is used in many textile mills for treating cloth prior to dyeing or printing to improve the dye absorption and lustre of the finished material. Most plants do not recover the caustic soda from the dilute spent solution and this is therefore discharged to waste water treatment facilities. These are often unable to effect proper treatment and contaminated water may then be dumped into local rivers. Recovery of the caustic soda from dilute spent solutions by a multiple effect evaporator system would reduce water pollution significantly and reduce the need for purchasing fresh chemicals. In this way, the demand for caustic soda could be reduced and the corresponding energy saved. (c) T3 Computerized energy management systems. The operations at many textile mills are relatively complex and good energy management requires a variety of parameters to be checked regularly. Adoption of computerized data collection and analysis systems can assist management to detect adverse trends in efficiency promptly and thus to make appropriate adjustments to key operating conditions in a timely manner. Such systems are of course - 90 - applicable throughout manufacturing industry and could show major benefits well beyond the textiles sector. 3.189 Based on data obtained on each of these measures from actual plants in China, the following rates of return and payback were estimated. The results-with the payback period including the time taken for construction-are as follows: IRR % Payback, years TI Cogeneration 37.6 6 T2 Caustic soda recovery 57.9 3 T3 Computerized e. mgmt. - - 3.190 Based on the characteristics of the textiles sector and taking into account the potential for applying the measures listed, forecasts for adoption under business as usual and accelerated scenarios were made. These were expressed in terms of million meters of fabric per year, by referring the required cogeneration capacity to an actual plant processing a known amount of fabric annually (and which has already invested in a cogeneration system). A similar argument was used for estimating the extent of caustic soda recovery and of energy management system computerization. The forecasts are as follows: 1990 2000 2010 (million meters/yr) T1 Cogeneration BAU without cogeneration 30,000 25,200 6,000 with cogeneration 0 4800 24,000 Accel. without cogeneration 30,000 22,800 3,000 with cogeneration 0 7,200 27,000 T2 Caustic Soda Recovery BAU without recovery 30,000 25,000 3,000 with recovery 0 5,000 27,000 Accel. without recovery 30,000 21,000 0 with recovery 0 9,000 30,000 T3 Computerized Energy Management BAU without computer system 30,000 22,500 0 with computer system 0 7,500 30,000 Accel. without computer system 30,000 18,000 0 with computer system 0 12,000 30,000 - 91 - Further details of the energy and emissions factors used for the calculations are given in Appendix A. Impacts on Energy and Emissions 3.191 Using the forecasts indicated above, the impact of the various measures on energy consumption in the textiles sector was estimated as follows: Savings 103 Savings 10 TCE/yr by 2000 TCE/yr by 2010 BAU Accel. BAU Accel. Ti Cogeneration 290.9 436.3 1,454.4 1,636.2 T2 Caustic recov. 50.7 91.3 273.8 304.2 T3 Computer e.m. 53.0 84.8 212.1 212.1 With respect to greenhouse gas emissions, the reductions in CO2 were forecast as follows: CO2 reduction CO2 reduction 103 TPY by 2000 103 TPY by 2010 BAU Accel. BAU Accel. Ti Cogeneration 211.8 317.6 1,058.8 1,191.1 72 Caustic recov. 32.3 58.1 174.4 193.7 T3 Computer e.m. 35.2 56.3 140.8 140.8 Emissions 3.192 Pollutants emitted by the textiles industry are as follows: (a) Wastewater. About 750 million tons need to be treated annually, of which 80 percent is from printing and dyeing. It is estimated that 67 percent is treated (1990) and 72 percent of printing/dyeing waste water is treated to meet the national discharge standards. (b) Waste gases. These are mainly the 228 billion cubic meters of combustion gases emitted from the burning of 22 million tpy coal in boilers, containing 387,200 t of S02, 44 million t of CO and 200,000 t of nitrogen oxides: - 92 - 123,200 t of particulates are also emitted. The textile industry (excluding TVEs) operates almost 18,000 boilers with a total steam raising capacity of about 55,000 t/h. (c) Solid wastes. These are mainly the ashes and slags from coal burning boilers, amounting to about 5.5 million tpy. This material is used in rural areas for road building and brick making. Any waste industrial material is either sold or buried. 3.193 It is recognized that proper combustion control is necessary to reduce emissions of carbon particles (unburned fuel) and dust, and to reduce carbon dioxide production by using less fuel. Most boilers are now fitted with dry or wet dust removing equipment. F. CHEMICALS Industry Profile and Products 3.194 The growth of the chemical industry since 1949 has been substantial. *In the 1970s, as petroleum and natural gas production expanded, major chemical plant construction included 13 large ammonia plants and one large ethylene plant (300,000 tpy capacity): these were built using imported technology. During the Sixth and Seventh Five-Year Plans (1976 to 1985), a large number of chemical plants were built and major production sites developed, mainly using locally-based technologies and some imported equipment. The rate of development of the chemical industry was higher than most other branches of industry until about 1970. Growth rates and output value indices are presented in Table 3.33. 3.195 The Chinese chemical industry is very diverse and manufactures over 30,000 different products, many based on coal as a fuel and feedstock, others on oil or natural gas. For some items, such as chemical fertilizers, sulphonates, caustic soda, calcium carbide and synthetic rubber, China ranks amongst the largest producers in the world. Output data for major products are given in Table 3.34. 3.196 There are over 20 subsectors of the chemicals industry-important ones include mining of chemical products, synthetic fertilizers, inorganic and organic basic chemicals, plastics and similar synthetic materials, fine chemicals, petrochemicals, synthetic rubber and rubber articles, and the production of chemical plant machinery. Numbers of enterprises and output values for various subsectors are shown in Table 3.35. 3.197 There are now more than 6,500 enterprises in the chemical industry, divided into large, medium and small-scale plants according to capacity or total fixed assets. Table 3.35 shows the chemical industry consisted of 3.5 percent large plants, 10.1 percent medium and 86.4 percent small plants in 1990. Many of the large and medium enterprises were built in the late 1970s, although some date from the 1950s. The proportion of large and medium plants has risen from about 4 percent in the late 1970s to about 13 percent by - 93 - Table 3.33: OUTrPUr VALUE INDICES AND GROwH RATES FOR THE CHEMICALS SECTOR AND THE INDUSTRIAL SECTOR Output index Annual growth rate Chemical Total Chemical Total Year/period sector industry sector industry 1952 100.0 100.0 1950-52 60.8 34.8 1953 131.8 130.3 1954 172.3 151.6. 1955 190.7 160.0 1956 285.9 204.9 1957 353.6 228.6 1953-57 28.7 18.0 1958 678.4 353.0 1959 956.8 481.7 1960 1,139.0 535.7 1961 727.5 330.3 1962 632.4 276.0 1958-62 - 12.3 3.8 1963 745.2 299.4 1964 947.4 358.1 1965 1170.8 452.8 1963-65 22.8 17.9 1966 1,502.0 547.4 1967 1,362.8 471.8 1968 1,282.3 448.1 1969 1,889.1 601.6 1970 2,243.0 793.1 1966-70 13.1 12.0 1971 - 2,662.3 915.3 1972 2,971.5 978.2 1973 3,284.2 1,071.2 1974 3,103.8 1,077.7 1975 3,672.5 1,244.7 1971-75 10.4 9.3 1976 3,612.5 1,274.9 1977 2,488.7 1,461.1 1978 4,980.4 1,659.0 1979 5,354.1 1,805.3 1980 5,643.5 1,972.3 1976-80 9.0 9.6 1981 5,611.3 2,057.2 1982 6,186.8 2,217.8 10.3 7.8 1983 6,926.2 2,465.9 12.0 11.2 1984 7,509.9 2,867.4 8.4 16.3 1985 7,916.7 3,480.9 5.4 21.4 1981-85 7.0 12.0 1986 8,521.7 3,887.0 7.6 11.7 1987 9,794.5 4,574.7 14.9 17.7 1988 11,064.2 5,525.6 12.9 20.8 1989 11,742.7 5,997.3 6.1 8.5 1990 12,428.5 6,465.1 5.8 7.8 1986-90 7.8 13.2 Table 3.34: OUrPur OF SELECTED CHEMICAL PRODUCIS All figures expressed as thousand tons per year Calcium Selected Ores Acids Caustic Sodium Chemical Fertilizers carbide Carbon Year FeS Ore Phosphor. Sultfuric Nitric Soda Carbonate Nitrogen Phosphor. Potassium Total Ammonia (300 Ukg black 35% Ore 30% Acid Acid HCL 100 pet (Soda ash) fert. (N) Fert (P) Fest. (K) acetylene) 1981 5,880 10.860 7,807 184 1,296 1.923 1,652 9.857 2,508 26 12,391 14,834 1,513 144 1982 6,190 11,730 8,174 246 1,483 2.073 1,735 10.218 2,537 25 12,780 15,464 1.564 164 1983 7,350 11,630 8,695 256 1,583 2.123 1,793 11,094 2,665 29 13,788 16,671 1,807 190 1984 8,010 14,210 8,172 258 1,704 2,222 1,880 12.211 2,359 31 14,601 18,371 1,846 223 1985 6,820 6,970 6,715 274 1,856 2,349 2,009 11,439 1,758 21 13,213 16,409 1,933 247 1986 7,830 9,790 7,630 275 2,059 2,158 2.144 11,588 2,325 25 13,938 16,579 2,147 280 1987 10,550 14,870 9,830 290 2,270 2,735 2,334 13,422 3,239 40 16,701 19,392 2,391 290 1988 11.160 18,220 11,112 302 2,462 2,978 2,619 13,608 3,607 53 17,263 19,793 2,253 290 1989 12,200 19,980 11,526 412 2,570 3,208 3,029 14,240 3,663 32 17,935 20,691 2,460 320 1990 12,740 21,550 11,969 318 2,023 3,352 3,793 14,637 4,116 46 18,799 21,290 2,281 327 - 95 - Table 3.35: CHEMICAL SECTOR EaERPRISES AND OUrPUT VALUES 1990 1991 Number of Output Number of Output enterprises value enterprises value (%) Y109 Y10' Total 6,668 1,394.3 6,564 1,519.3 Large scale 232 (3.5%) 477.7 253 561.9 Middle scale 672 (10.1%) 365.2 755 405.6 Small scale 5764 (86.4%) 551.4 5,556 551.8 Mining 205 (3.1) 18.1 202 20.0 of which, sand/stones 2 0.1 2 0.1 Chemical ores 203 18.0 200 19.9 Basic chem. materials 1,065 (16.0) 234.4 1,044 237.6 Chemical fertilizers 1,775 (26.6) 344.8 1,737 368.8 of which, N fert. 1,093 263.0 1,052 273.7 Small ammonia 1,033 167.4 993 173.4 P fertilizer 592 78.1 573 96.2 K fertilizer 1 0.1 1 0.1 compound fertil. 89 3.7 111 8.8 Chemical pesticides 210 (3.1) 64.1 333 75.4 Organic chemicals 1,329 (19.9) 297.6 1,307 337.1 of which, basic mat. 325 105.5 323 126.5 Paint, pigments 343 79.5 338 89.2 Colorants 100 36.2 97 38.3 Chemical reagents 88 8.9 88 9.0 Catalysts 266 38.1 267 43.8 Adhesives 27 1.9 267 43.8 Magnetic materials 16 2.5 11 1.5 Miscellaneous 164 25.1 159 26.7 Synthetic materials 106 (1.6) 39.8 112 58.4 Light sensitive materials 8 (0.1) 4.8 7 5.6 Rubber products 1,049 (15.7) 290.1 1,015 308.2 Chemical machinery 245 (3.7) 23.8 238 26.0 Others 676 (10.1) 76.8 680 82.2 the late 1980s. The fertilizer enterprises represented 26.6 percent of the total number of enterprises (the largest category), with other major subsectors being organic chemicals (19.9 percent of enterprises), basic chemicals (16 percent) and rubber processing (15.7 percent). - 96 - 3.198 The smaller plants are very widely distributed: for example, almost every county has a fertilizer plant. Larger plants are located in areas with greater industrial concentrations and good technical support. The location of enterprises and the distribution of output values are given in Table 3.36 and summarized in Table 3.37. 3.199 The annual output of fertilizers has been around 18-19 million tons in recent years. The output of nitrogen fertilizer is over 14.5 tpy, about 80 percent of the total production, within which urea makes up 33 and ammonium bicarbonate 60 percent (Table 3.38). The raw material for nitrogen-based fertilizers is synthetic ammonia, the output of which is about 20 million tpy, 22 percent from medium-scale plants, 22 percent from large plants and 56 percent from small plants. A variety of feedstocks are used but more than half the ammonia is made from coal (see Table 3.39). 3.200 The annual output of phosphorous fertilizer-mainly calcium phosphate and calcium magnesium phosphate-has been around 4 million tons in recent years, or about 20 percent of fertilizer production. The output of ammonium phosphate has been increasing and is now about 3 percent of phosphorous fertilizer production. The trend is towards a greater proportion of phosphorous fertilizer in the total chemical fertilizer production. 3.201 There is relatively little production of potassium-based fertilizers. The annual output is only about 30-40,000 tons, 0.2 percent of fertilizer production. 3.202 Another basic material is sulfuric acid, the annual output of which has been 11-12 million tons recently, about 82 percent of which is typically made from pyrites, 15 percent from smelter gas and 3 percent from raw sulphur. Various grades of sulfuric acid and related products are made, such as high concentrate oleum, battery acid and liquid S03. Oleum production is about 350,000 tpy and liquid sulfuric acid about 40,000 tpy. Some plants still produce ammonium bisulphite, ammonium sulphite and liquid S02* 3.203 Caustic soda manufacture is important and output has been increasing in recent years to around 3 to 3.4 million tpy. A number of technologies are used, such as electrolysis by the diaphragm or mercury cathode process: about 90 percent of caustic soda is now made by the diaphragm electrolysis route. In 1988, China imported a 10,000 tpy plant for making caustic by the ion-exchange membrane process. This uses less energy and gives high quality product with less pollution. Caustic soda output by this technology has now reached about 300,000 tpy and is expected to increase. 3.204 The output of soda ash exceeded 3 million tpy in 1989, of which about 70 percent was made in eight large plants and the remainder in small or medium-scale plants. It is expected that the proportion made in the larger plants will increase-three plants with capacity of 600,000 tpy each are to be brought on-line soon. The processes used are the ammonia-soda route and the joint process, the former representing about 56 percent of the present production after commissioning the new plants. - 97 - Table 3.36: CHEMICALS ENTERPRISES AND OUIUT VALUES BY LOCATON 1990 1991 No. of Gross output No. of Gross output enterprises value 10' Y enterprises value 10' Y Total 6,668 1,394.3 6,564 1519.3 Beijing 38 49.0 38 50.4 Tianjin 209 58.1 210 58.8 Hebei 442 72.4 432 80.5 Shanxi 245 36.7 230 38.0 Neimeng 137 13.5 137 14.1 Liaoning 489 100.3 512 107.0 Jilin 244 66.5 171 68.7 Heilongjiang 218 36.2 236 38.4 Shanghai 235 108.8 225 117.6 Jiangsu 446 125.9 443 137.1 Zhejiang 239 60.8 232 70.5 Anhui 252 38.1 254 42.2 Fujian 142 28.3 142 31.6 Jiangxi 171 18.7 159 19.7 Shandong 455 125.7 465 138.5 Henan 395 63.4 371 75.0 Hubei 313 60.8 328 65.6 Hunan 349 54.7 346 60.3 Guangdong 324 64.8 325 77.9 Guangxi 142 24.2 138 25.9 Hainan 14 2.2 14 2.5 Sichuan 376 81.2 380 87.3 Guizhou 125 21.1 113 22.7 Yunnan 198 32.0 199 34.7 Xizhang 1 - 1 - Shaanxi 169 20.2 159 21.5 Gansu 84 11.0 88 1.8 Qinghai 29 2.7 29 2.6 Ningxia 41 8.6 46 9.0 Xinjiang 146 8.5 141 9.6 - 98 - Table 3.37: SHARE OF CHEMICALS OUTPUT BY REGION Percentages of 1987 1988 1989 1990 national output Eastern coastal / 58.6 58.4 57.8 58.0 Central inland /b 34.1 34.2 34.5 33.9 West region / 7.3 7.4 7.7 8.1 L4 Liaoning, Hebei, Shandong, Jiangsu, Zhejiang, Fujian, Guangzhou, Hainan, Tianjin, Beijing, Shanghai. L Heilongjiang, Jilin, Shanxi, Shaanxi, Anhui, Jianxi, Henan, Hubei, Hunan, Sichuan. L& Neiming, Ningxia, Gansu, Qinghai, Xinjiang, Xizhang, Yunnan, Guizhou, Guangxi. 3.205 The output of calcium carbide is now about 2.3 million tpy, more than half produced by small furnaces. It is not expected that carbide production will increase in future. Energy Use 3.206 For fuels, electricity and feedstocks, the chemical industry consumes around 90 million TCE of energy every year, representing about 9 percent of the national energy consumption. Energy use is increasing at 2-3 percent each year. Figures for energy use by type of energy and by subsector of the industry are presented in Table 3.40. As indicated in this table, the chemical industry uses a large amount of energy resources as feedstock (over one third of total consumption of energy products). A detailed breakdown of energy use by industry subsectors and by type of energy source is given in Table 3.41. 3.207 The variation in energy consumption across more than 6,500 enterprises is of course very large. However, many of the plants are small and there are relatively few which can be considered large energy consumers. The following approximate figures are available: Annual consumption < 20,000 TCE say 4,700 enterprises > 20,000 TCE say 2,000 > 50,000 TCE say 200 3.208 Steam is used widely in the chemical industry as a heating medium, a raw material and as a means of producing electricity. About 150 million tpy are used-80 million for processes, 30 for heating and 40 for electricity generation. With respect to - 99 - Table 3.38: COMPOSMON OF FERTLIZER PRODUCTS Production Percent Percent of 10 t of total each type Nitrogen fertilizer Ammonium sulphate 0.104 0.7 Ammonium nitrate 0.579 4.0 Urea 4.885 33.4 Ammonium chloride 0.387 2.6 Ammonium bicarbonate 8.480 58.0 Urea solution 0.071 0.5 Other 0.126 0.9 Subtotal li32 22. Phosphorous. fertilizer Calcium phosphate 2.891 70.2 NPK fertilizer 0.975 23.7 Ammonium phosphate 0.110 2.7 Other 0.140 3.4 Subtotal 4..fik 2.L10 Potassium fertilizer 0.046 0.2 loal 1224 100.9 electricity, 63 billion kWh are consumed annually, with a very rough breakdown estimated as follows: 109 kWh Process (e.g., electrolytic) 5 Air compression 7 Pumping 20 Ammonia compressors 11 Lighting, maintenance 3 Heating, all other uses, losses 17 Total0 - 100 - Table 3.39: FEEDsTOCK FOR AMMONIA PRODUCTION, 1990 Quantity Percent 106 t Anthracite 11.598 52.6 Coke 0.933 4.2 Coke from TVE's 0.909 4.1 Brown coal 0.600 2.7 Heavy oil 2.200 10.0 Natural gas 3.610 16.4 Oilfield gas 0.238 1.1 Coke oven gas 0.230 1.0 Refinery gas 0.081 0.4 Light oil 1.641 7.4 Others 0.014 0.1 Total 22,0.4 3.209 Energy consumption data for the manufacture of major products are presented in Table 3.42 in terms of total energy and specific energy consumptions. 3.210 Part of the energy consumed by the chemical industry is provided by government (the "planned" amount) and some must be purchased on the open market. Prices can vary considerably: for example, the price of heavy oil in late 1992 was about Y 200 per ton for "plan" oil but around Y 480/t on the open market. The insufficiency of supply of natural gas and oil fuels is particularly acute, with the potential demand being satisfied to an extent of only about 60-80 percent. Only about 80 percent of potential electricity demand is met. Even the demand for coal cannot be met due to serious limitations on coal transport. Table 3.40: ENERGY CONSUMION IN THE CHEIMCAL INDUSTRY 1985-90 1988 1989 1990 10 TCE Percent 0Percent 100 TCE Percent 10' TCE Percent Primary energy use excl. electricity 210.98 51.0 44.10 52.2 45.83 52.0 46.67 52.1 Energy as feedstock 152.78 36.9 30.96 36.7 32.22 36.6 32.03 35.8 Subtotal 363.76 88.0 75.06 88.9 78.05 88.6 78.70 87.9 Electricity 49.80 12.0 9.35 11.1 10.04 11.4 10.86 12.1 Total 413.56 100.0 84.41 100.0 88.09 100.0 89.56 100.0 Share of national energy use 9.2 9.2 9.2 9.1 By energy type coke and purchased steam 237.10 57.3 49.36 58.5 51.00 57.9 50.57 56.5 oil fuels 23.85 5.8 4.50 5.3 4.88 5.5 5.06 5.6 gas 30.66 7.4 5.90 7.0 6.70 7.6 6.09 6.8 electricity 115.29 27.9 22.94 27.2 23.85 27.1 24.50 27.4 other 6.66 1.6 1.71 2.0 1.66 1.9 3.34 3.7 Total 413.56 1.Q0 84.41 .08.92 10i0. 89.56 100.0 By subsector chemical mines 3.71 0.98 0.64 0.8 1.38 1.6 0.79 0.9 basic chemicals 68.70 16.6 13.66 16.2 13.73 15.6 14.99 16.7 fertilizers 249.53 60.3 52.76 62.5 53.36 60.6 51.97 58.0 of which, N fertilizers 290.58 55.8 48.61 57.6 49.25 55.9 48.07 58.7 pesticides 5.91 1.4 1.20 1.4 1.30 1.5 1.35 1.5 organic chemicals 49.91 12.1 10.84 12.8 10.73 12.2 11.45 12.8 rubber products 13.56 3.3 2.61 3.1 2.85 3.2 2.91 3.2 chemical machinery/equipment 1.17 0.3 0.24 0.3 0.24 0.3 0.23 0.3 other 21.07 5.1 2.46 2.9 4.50 5.1 5.87 6.6 Total1 413.56 1.0i 84.41 iQL00l.0 IQ Table 3.41: ENERGY RESOURCE CONSUMIION IN 1990 (I) The whole nation e.u stto Raw coal Coal by ckine Coke Coke Heavy oil among among among Enter- Amona which: which: among which: Crude which: prin Bought Bituni. Washed Other self- which: self- - oil self. unit Sub- Anthr- outer nite Ug- Sub- serined washed Sub- supply machine supply sub- Sub-. supply Name number otal cite briquet coal nite total coal coal total & use coke & use total total & use First I 2 3 4 S 6 7 8 9 10 II 12 13 14 Is 16 1. Total 4.395 55.020.073 25.912.997 34.973 27,897.2S41,174.8485,109.6294.339,682 174.188 7,368.278 858,188 1,358.788 557.878 199.254 3.044.223 511,957 2. slrge sied enterprise 210 10,583,481 1.757,518 8 8.657.251 168.650 3.655.141 3.655.018 $6.254 2.232.423 634,391 1.652.277 550.878 129.418 1.727.829 478.548 3. Modium sized eittepriase 589 11.182.932 3.410.043 27 7,182.012 899.850 832.151 533,853 29.089 1.843.598 2.558 128.294 0 33,759 824,117 0 4. Small sized enterprise 3.587 33.273.680 20.745,438 34.943 12.087.951 405.348 622.337 150,793 88,823 3.292.258 21.242 178.217 0 38,077 293,077 3.419 5. Chemcal industry raw material total 1.753 24,454,372 22.245,824 5.843 2.007,400 195.765 209 0 48,785 8,434.309 578.398 1,117.222 517.249 188.908 1.253,257 299.280 6. Non-metallic miing 185 423.578 91.238 0 332.310 29 4.530 4.494 0 110.731 0 1.048 0 14 1.983 0 7. among which: soil-sand tone mining 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8. Chemistry mining 183 423.578 91,238 0 332.310 29 4.530 4,494 0 110,731 0 1.048 0 14 1,983 0 9. Elemen"tay chemical raw material Industry 628 8.109,801 1.323.481 1 878.610 70.508 317.381 317.381 59.331 1.295.497 168.088 581.768 168.888 16.100 253,661 4,770 10. Fatilizer hdustry 1.621 36.676,789 23.842.068 25,644 1.209,773 713,341 1,072.487 1,002.009 79,392 5,248,992 1,940.171 395,354 172.523 1,326 811,944 5,842 11. amont whik alrogen fertlirer industry 1.075 35.286.733 23,205.303 25,442 1.138,074 892,244 894.702 824,349 75,075 3.913,724 157,142 284,980 133,345 1.297 805.944 5,842 12. Small slrojn fertilizer hdustry 1,017 28,583.210 20.326.359 25.442 720.011 233.298 258.087 185.734 72.255 1.713,953 23.797 S5.178 0 1.097 195.887 642 13. Phosphatstrilizer industy 508 1,375.182 638,477 202 70.883 20.887 177.785 177,660 1.802 1.335.204 39,175 113,394 39,175 18 65.998 0 14. Potash fertillw industry 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 15.CompoundfestilizerIndustry 33 14,869 288 0 10,351 230 0 0 2,55 84 0 0 0 7 0 0 Table 3.41: cont'd The whole nation Measured unit ton Raw Coal Coal by cakin Coke Coke Heavy oil among among among Enter- Amongt which: which: among which: Crade which. pris Bought Bitumi- Washed Other self- which: self- oil seu unit Sub- Anthra- outer nite Lig- Sub- refined washed Sub supply machine supply sub- Sub- supply Name number total cite briquet coal nito total coal coal total & use coke & use total total & use Fisst I 2 3 4 5 6 7 8 9 10 II 12 13 14 is 16 16. Chemical pesticide industry 169 878.272 135.781 0 710.863 14.648 0 0 900 18.322 0 4.166 0 8 1.654 0 17. Organic chemical products industry 732 4.413.896 183.831 394 4.024.083 205.612 618.142 618.142 4.796 358.376 216.468 252.262 216.468 171.159 S11.850 450,509 18. among which: organic chemical raw material industry 217 2.157.428 83.129 4 2,010.149 $5.150 482.494 482.494 0 323.914 216.468 244,057 216.468 21.474 407.212 400.387 19. Costing and pigment Indutry 173 499.839 41.874 0 463.574 7.591 2.585 2.585 0 13.066 0 1.901 0 8.854 81.469 0 20. Dyesaffusldtry 61 633.093 19.355 269 590.018 19.858 0 0 0 5.532 0 5.204 0 0 10.901 0 2t. Chemical regent industry 29 50.532 0 0 50.532 0- 3.092 3.092 0 277 0 0 0 0 0 0 0 22. Catalyst and sort of chmical 0 auxiliary Industry 148 33.512 27.S21 107 500.621 105.263 149.971 149,971 4.798 15.587 0 1.700 0 140.592 222.509 2.261 23. Adhesive Indty 13 12.375 1.771 0 11.804 0 0 0 0 0 0 0 0 99 0 0 24. Magneic seod materi industry 9 8.743 0 0 743 0 0 0 0 0 0 0 0 0 334 0 25. Other organic chemical products ilustry 32 418.369 10.381 14 390.024 17.950 0 0 0 0 0 0 0 140 79.42S 3.512 26. Synthesis material industry 76 500.059 31.935 4.850 468.274 0 2.414 2.414 0 113.709 0 11.453 0 0 81.241 24.281 27. Ught sesitive material industry 3 30,272 0 0 30.272 0 0 0 0 0 0 0 0 0 6.327 0 28. Rubber psducts Industy 328 2.783.751 249.487 4.038 2.383.021 115.225 15.053 15.053 24.122 409 0 179 0 943 85.215 0 29.Chemicalengineer mechancalindustry 168 110.542 7.781 27 108.580 5,154 0 0 7 12.701 0 4.911 0 1.022 10.022 0 30. Other Idtry 302 1,086.313 44.435 24 1.041,521 338 3.079,6222.30.819 5.618 209.612 76,515 105,047 0 8.633 140.330 27.777 Table 3.41: cont'd Thme whole nation Measured unit: ton Eectricity Oil refnry plant Coke oven gas (ten power (ten dry ias Natural thou. cubic meter) thousand kWh) Uqui- Among gaM Among Among Other energy resource (ton normal coal) Oso- Kero- fied which: (ten which: which: Among which: line acne Dicsel petro. self- thousand self- Bought self- Other Other Other sub- sub- sub. lurn Sub- supply cubic Sub- supply outer Sub- supply Sub- coal petrol pyro Name total total total gas total & use meter) total & use vapor total & use total gas products products Total Second 17 is 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 1. Total 470.209 20.324 181,140 22,319 111.733 94.440 474.448 212.527 105.854 20.541,934 8.375.455 311.673 1.321.871 26.427 855.173 298.969 89,581.973 2. large sized enterprise 141.173 14.183 87.259 270 78.284 76.284 332.443 185.80 94,095 15,019.638 2.042.895 257.142 983.480 19.618 555,171 143.112 3.129.022 3. Medium sized enterprises 128.784 1,599 33,924 17.322 1.942 0 24,808 22.854 8.194 3.943.388 1.33S.007 31.48 246.363 3,459 39,845 114.850 17,437,015 4. Small sized enterprise 199.732 4.541 59,957 4.727 33.507 18.058 117,184 3,993 3,585 1.578.913 3,027.873 22,606 112.023 3.352 80.158 41.007 40.834.700 5. Chemical raw material total 167.485 12.730 5.774 149 0 0 382.770 43.870 18.73 909.912 245.435 2.131 1.036.347 3,323 570,903 131.395 32,033.540 6. Non-metallic mining 21.252 33 20,379 0 0 0 0 0 0 0 78.089 4,314 0 0 0 0 785,525 7. Among which* soil-saed stone mining 0 0 0 0 0 0 0 0 0 0 30 0 0 0 0 0 274 8. Chemistsy mining 21.252 33 20,379 0 0 0 0 0 0 0 78,001 4.014 0 0 0 0 785,251 9. Elemntary csemlcal aw terial 47.618 2.887 38.575 13 0 0 17.815 8.103 0 5.383,035 1.806.283 133.015 S1.297 8.435 7.698 7,915 14.938,070 10. Fertilizer industry 148.112 1.027 70,258 218 0 0 435,234 48,363 18.758 4,094.744 3.451.876 136.503 51.597 3,449 18.985 278 51,985.556 11. Among whL* aitrogen fertilizer 122.502 772 53,052 124 0 0 434.040 48.363 18,758 3.18.928 3.141.183 116,467 51.353 3.449 18.985 278 48,070.428 12. Small nitrogen fertilizer 61.622 $83 13.313 24 0 0 112.621 2.165 2.165 91.709 2.203,459 21.513 10.600 1.590 4.533 278 32,162.174 13. hoasphatefertilizer 25.118 254 13,983 94 0 0 1.141 0 0 905.741 307.923 20.037 244 0 0 0 3.869.451 14. Potash fertilizer 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 15. Compound fetiler 492 I 216 0 0 0 53 0 0 79 2,770 4 0 0 0 0 25.777 Table 3.41: cont'd The whole nation MeasurA unit ton Electricity Oil refinery plant Coke oven gas (ten power (ten dry gas Natural thou. cubic meter) thousand kWh) .jqui- Among gas Among Among Other ener" resource (ton normal coal) Gaso- Kero- led which: (ten which: which: Among which: line se Diesel petro- self- thousand self- Bought self- Other Other Other sub- sub- sub- teum Sub- supply cubic Sub- supply outer Sub- supply Sub- coal petrol pyro Name total total total gas total * & use meter) total & use vapor total & use total gas products products Total Second 37 38 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 16. Chemical pesticide 10.779 174 8.233 287 0 0 0 0 0 1.359.901 148.200 7.924 170 3 0 0 1.348.285 17. Organic chemical 161.734 4.183 32.743 8.863 74.644 74.644 18.698 18.698 15.878 S.292.988 492.571 28.238 1.079.493 1.924 576.436 225.497 9,583.261 18. Among which: organic . chemical raw material 18,051 1,027 8,560 8,689 73.574 73,74 7.529 10.549 10.542 4.571.193 343.500 17.972 743.115 151 S38.558 21.363 5.743.375 19. Coating and pigment 127.336 1.604 16.531 85 0 0 329 329 0 130.619 29.449 46 7.024 1.528 30 0 789.723 20. Dyestuff 3,793 300 1.486 2 0 0 1.191 1.429 0 126.723 34.292 2.103 13.08 174 0 9.193 645.40 0 21. Chemical reagent t.199 33 123 0 0 0 19 223 0 198.387 3.391 0 3.620 0 0 2.667 87,789 22. catalyst a sont or chemicel a fary 7.223 1.187 3.609 s 0 0 7.629 5.683 5,334 139.63 46.357 - 8.658 306.177 0 33.393 192.274 1.742.587 23. Adhesive 280 0 27 0 0 0 0 0 0 11.088 809 1 22 0 0 0 13.212 24.Mgactiec scod material I34 0 323 0 0 0 0 0 0 448 1.001 28 59 0 0 0 11.447 25. Othe organic chanla pmodrni 3.733 232 2.084 2 1.070 1.070 0 5S 0 114.689 33.472 1.430 6.382 73 4.455 0 569.088 26. Synthesismaterisg 8860 87 1.318 11.584 1.40 1 N0 1.634 1.497 0 2.209.085 203.2M0 538 23.549 341 5.59 8.17 1.754.821 27. LJght sensitive aterial 936 3 85 0 0 0 0 0 0 378,007 7.307 0 9 0 0 0 109.816 28. tubber products 57,033 372 4.73 19 0 0 3 0 0 639.691 253.206 197 2,360 343 27 6.867 2.908,884 29. Chemical engineer ffWef,ftnl 5.696 962.446 44 0 0 I.S432 151 0 99.280 18,901 10 646 77 7 0 225.095 30. Others 11,3 5 11.487 7.912 1.481 35.449 18.15 1.468 135.715 71.220 1,087.201 110.805 931 112.750 11.805 48,185 50,227 5.893,964 - 106 - Table 3.42: ENERGY CONSUMPTION FOR PRODUCTION OF SELECTED CHEMICALS 1986 1987 1988 1989 1990 Ammonia Large scale energy per ton ammonia MJ 41,168 41,868 41,575 40,110 39,374 Medium scale coal kg/t 1,279 1,315 1,299 12,79 1,293 electricity kWh/t 1,384 1,409 1,408 1,413 1,393 steam kg/t 2,730 2,600 2,690 2,550 2,526 energy per ton ammonia MJ 65,531 66,018 64,828 64,272 63,785 Small scale coal kg/t 1,722 1,851 1,829 1,782 1,676 electricity kWh/t 1,293 1,445 1,455 1,383 1,333 energy per ton ammonia MJ 68,216 71,347 70,836 68,622 66,323 Fertilizers, energy and feedstock N fertilizer TCE/t 4.12 3.90 4.14 3.94 3.86 P fertilizer TCE/t 1.38 1.13 1.13 1.11 0.94 Overall TCE/t 3.54 3.27 3.42 3.37 3.13 Fertilizers, electricity N fertilizer kWh/t 2,374 2,534 2,549 2,484 2,522 P fertilizer kWh/t 815 850 776 833 747 Overall kWh/t 2,070 2,154 2,128 2,158 2,078 Caustic soda total energy consumption 106 TCE 4.54 1.92 5.31 5.82 6.00 of which, coal 10' TCE 1.87 2.03 2.17 2.42 2.41 electricity GWh 6,613 7,163 7,774 8,422 8,884 AC electricity kWh/t 2,626 2,619 2,610 2,625 2,650 steam t/t 5.20 5.19 5.09 5.29 5.08 overall TCE/t 1.80 1.80 1.78 1.82 1.79 Calcium carbide total energy consumption 106 TCE 4.95 5.26 4.95 5.66 5.02 of which, electricity 109 kWh 77.1 78.3 80.3 89.1 81.0 electricity use kWh/t 3,585 3,559 3,567 3,621 3,550 total energy use TCE/t 2.3 2.2 2.2 2.3 2.2 Soda ash total energy use 10' TCE 1.05 1.16 1.21 1.43 1.94 in ammonia soda process TCE/t 0.560 0.570 0.544 0.539 0.613 in joint process TCE/t 0.410 0.410 0.400 0.416 0.391 overall TCE/t 0.486 0.494 0.475 0.479 0.517 - 107 - 3.211 With respect to the proportion of energy costs in relation to overall manufacturing costs, these are generally high for many subsectors of this industry. For example, energy costs as a percentage of total manufacturing costs for some key products are as follows: (percent) Fuels Elec. Fuel & elec. Total energy N fertilizer 25 70-75 Caustic soda 7.5 17.5 25 Calcium carbide 8 29 37 Soda ash 19 Sulfuric acid 12.5 Energy Efficiency 3.212 The wide range of processes, plant scale and age within the chemicals sector means that energy efficiencies are extremely variable. However, it is recognized that the energy efficiency in the industry is generally rather low. Most furnaces are small, many are chain grate stokers: the average combustion efficiency of chemical industry furnaces and kilns is estimated at 65 percent. Allowing for an efficiency of steam distribution of say 90 percent (and this may be too high) and of heat utilizing equipment of up to 70 percent, the overall energy utilization is around 30-40 percent. 3.213 Some key process efficiencies are known to be low. For example, the efficiency of gasification for synthetic ammonia production is typically 50-60 percent, and the evaporation stage to produce solid caustic soda say 15-20 percent. Energy Efficiency Trends 3.214 Greater attention is being paid to energy efficiency and it is estimated that the overall energy consumption per unit of product was reduced by about 5.4 percent annually during the Sixth Five-Year Plan (1981-85) and is now being reduced by about 4 percent per year. The elasticity coefficient for energy use (percent change in energy use divided by percent change in production) from 1981 to 1990 was 0.57. 3.215 Measures taken by the industry in recent years range from improving management to major investments in new equipment and technologies. Greater attention is paid to the recovery of by-product materials or wastes, including better heat recovery. Some examples of measures adopted in the production of ammonia and fertilizers in medium and large plants are as follows: - 108 - (a) Recovery of hydrogen from purge gases. (b) Heat recovery in the synthesis gas reformer. -(c) Use of flash steam in CO2 recovery systems. (d) Computer monitoring and control of key process parameters, such as the ratio of hydrogen to nitrogen, combustion systems, purge gas rates, etc. (e) Upgrading and increasing the size of small gasification units. (f) Gasification grate improvements and automated coke feeding. (g) Use of superheated steam in gasification. (h) Improved automatic control. (i) Use of heavy oil with carbon slurry for gasification feed. (j) More efficient CO and CO2 removal technologies. (k) Installation of waste heat boilers on medium-scale reformers. (1) Adoption of improved catalyst. 3.216 Small-scale ammonia plants are typical in the Chinese chemicals industry. About 40 specific measures are being widely enforced to save energy and reduce material waste. Many of these are similar to the measures listed above, and also include various revamp procedures such as improved gas recycling, measures for self-sufficiency in steam, and increased water recycling. 3.217 In phosphorous fertilizer manufacture, emphasis is being placed on modifying furnace types, to waste heat recovery and to better process operation. 3.218 In the manufacture of caustic soda, a variety of energy saving measures are being utilized, such as: (a) Improved electricity rectification. (b) Improvements to brine purity. (c) Replacement of graphite anodes by metal anodes. (d) Ion exchange techniques. (e) Adoption of triple effect evaporation. (f) Increased condensate recovery and heat utilization. (g) Control of electrolyte concentration. (h) Recovery of residual heat in hydrogen and chlorine. (i) Waste heat recovery from HCL synthesis reaction. 3.219 During the early 1980s, the production of calcium carbide was raised and technical improvements to the process were introduced, some of which were imported. These included: (a) Converting open furnaces to sealed types allowing gas recovery. (b) Use of hollow electrode technology. (c) Using waste furnace gas for limestone calcining kilns, with improved gas cleaning methods (estimated saving, 0.17 t coke per t carbide). (d) Wider use of computer control for reactor optimization. - 109- 3.220 Also during the first half of the 1980s, the soda ash industry expanded rapidly and the technical level was raised. Computers are now being used more extensively and process improvements include the use of steam calciners, flash distillation of liquid wastes, larger carbonization towers, and vacuum distillation techniques. 3.221 Although the Chinese output of sulfuric acid is ranked third in the world, most plants are small. Only 40 percent of the production is made in medium or large plants with capacities over 4,000 tpy. However, improvements in energy efficiency are being made, such as: (a) Recovery of the heat of reaction to reach total heat self-sufficiency, and heat export in some cases. (b) Generation of electricity from steam produced by high temperature heat recovery. (c) Improved catalysts. (d) Adoption of heat pumps. It is recognized that much medium and low level waste heat is available and could possibly be recovered for useful applications. Potential for Improvement 3.222 For the manufacture of fertilizers, the potential to improve energy efficiency is good. The average energy consumption of a large-scale ammonia plant in China is about 1.3 TCE compared with perhaps 1.2 TCE in more advanced countries. However, for medium-scale ammonia plants, the figure is 2.5 TCE, for small plants 2.2 TCE. There is estimated to be a potential saving of 0.1 to 0.2 TCE per ton of ammonia production, at least in medium and large-scale plants. This amounts to about 1.3 million TCE savings per year. 3.223 In the making of caustic soda, it is estimated that the difference between Chinese electricity consumption and consumption in advanced countries is about 400 kWh per ton of product (2,500 versus 2,100 kWh/t). Overall energy consumption, including thermal and electrical energy, differs by say 0.2 TCE/t (1.8 TCE/t in China versus 1.5-1.6). Based on present output, this represents a potential saving of around 0.6 million TCE/yr. If the ion exchange technology were to be adopted widely, this potential saving could be doubled. 3.224 Similarly, it is estimated that potential savings for the manufacture of soda ash are of the order of 0.6 million TCE/yr, while savings for the calcium carbide are over 130 million kWhlyr. 3.225 For the sector as a whole, it is expected that the energy used per Y 10,000 output value will decrease from 13.75 in 1990 to 10 in 2000, with savings of around 60 million TCE/yr. - 110 - Projected Industry Outputs and Energy Consumption 3.226 According to plans, the chemical industry output is expected to increase by 6.7 percent a year to reach Y 145 billion by 2000 from 77 billion in 1990, itself a doubling of the output in 1980. Chemical product quality will be improved and the pattern of products will change, with a shift towards more downstream processing and more consumer products. 3.227 The anticipated outputs of major products are indicated in Table 3.43, together with forecasted specific energy consumptions. For the chemical industry, it is expected that energy consumption will increase by about 3.7 percent annually. The total energy use by the industry is expected to reach about 125 million TCE in 1995 and 140 million TCE in 2000. Generic Investment Options 3.228 Three measures were selected for detailed examination as case studies in the chemicals sector, two concerning ammonia production and one relating to the manufacture of caustic soda: CHI Renovation of medium-scale coal based ammonia plants. Most small and medium-scale chemical fertilizer plants in China are based on coal as a raw material and energy source. Many were built in the 1950s and 1960s and use old equipment and outdated process technology. Efforts have continued from the early 1980s to improve their operation by applying a wide range of measures, and some success has been achieved. Major renovations to upgrade equipment and processes are possible, resulting in higher energy efficiency and increased capacities. These include adopting cogeneration systems, the use of steam turbines in place of large electric motors, the use of improved shift reaction catalysts, and improvements to ammonia synthesis towers. CH2 Waste heat recovery in small coal based ammonia plants. There are over 1,000 small coal based plants producing ammonia, mostly built in the 1960s and 1970s: these make ammonium bicarbonate and are responsible for over half the annual output of ammonia in China. Although efforts have been made to improve their energy efficiency over the years, equipment and processes are generally outdated. Major renovation of the process is possible, including improvements to synthesis gas generation, gas compression and treatment, and substantial improvements to heat exchanger networks and more effective use of heat. CH3 New membrane technology for caustic soda electrolysis. - 111 - Table 3.43: FORECASTS OF OUTPUT AND SPECIFIC ENERGY CONSUMPTION FOR THE CBEMICAIS INDUSTRY 1990 1995 2000 2010 Output forecasts (million tons per year) N fertilizers 14.64 15.70 18.35 20.00 P fertilizers 4.12 5.00 5.50 9.00 K fertilizers 0.05 0.30 0.48 1.00 Total fertilizers O1 2 2 Caustic soda 3.35 4.00 6.00 7.00 Soda ash 3.79 5.20 6.85 8.00 Sulfuric acid 11.89 14.00 13.00 20.00 Calcium carbide 2.28 2.70 3.00 3.50 Specific energy consumptions (TCE/ton) N fertilizers 3.86 3.40 3.26 3.05 P fertilizers 0.94 0.92 0.89 0.87 Average 3.13 2.80 2.65 2.45 Caustic soda 1.79 1.70 1.60 1.45 Soda ash, Solvay process 0.61 0.59 0.55 0.46 Soda ash, .. 0.39 0.38 0.35 0.30 Calcium carbide 2.20 2.14 2.00 1.80 Ammonia -- large scale 1.10 1.07 1.00 Ammonia -- medium scale 1.93 1.79 1.75 Ammonia - small scale 2.00 1.88. 1.80 Electrolysis of brine for caustic soda production consumed about 15 percent of all the electricity used by the chemical industry in 1990. Most Chinese plants use either metal or graphite electrode technology and energy efficiencies are moderate to low. Modern membrane technology can allow important reductions in electricity use and will also allow higher quality caustic soda to be produced which is suitable for export markets. 3.229 Based on actual plant data from enterprises where the above measures have been or will be installed, economic evaluations were carried out with the following results: - 112 - IRR % Payback, years La CH1 Renov. medium plants 19.5 10 CH2 Waste heat recovery 71.4 3 CH3 Membrane technology 29.4 6 /a Payback includes construction time. 3.230 Based on sector characteristics, forecasts of adoption of the measures listed were made for business as usual and accelerated scenarios. These are as follows, referred to annual plant capacity in million tpy ammonia: 1990 2000 2010 CH1 Renov. Medium-Size Plants (million tpy NH3) BAU not renovated 1.5 1.5 1.5 renovated 0.0 0.0 0.0 Accel. not renovated 1.5 1.2 0.6 renovated 0.0 0.3. 0.9 CH2 Waste Heat Recovery, Small Plants (million tpy NH3 BAU unmodified 7.5 6.0 0.0 with WHR 0.0 1.5 7.5 Accel. unmodified 7.5 4.5 0.0 with WHR 0.0 3.0 7.5 CH3 Membrane for Caustic Soda (million tpy caustic) BAU unchanged technology 3.0 3.0 2.7 with membrane 0.0 0.0 0.3 Accel. unchanged technology 3.0 2.4 1.5 with membrane 0.0 0.6 1.5 3.231 Further details of the assumptions made and the energy and emissions factors used in the calculation are given in Appendix A. - 113 - Projected Impacts on Energy and Emissions 3.232 Using the forecasts indicated above, the expected impacts on energy consumption in the chemicals sector are as follows: Savings 101 Savings 103 TCE/vr by 2000 TCE/yr by 2010 BAU Accel. BAU Accel. CH1 Renov. medium plants 0 123.7 0 371.0 CH2 Waste heat recovery 414.1 828.2 2,070.4 2,070.4 CH3 Membrane technology 0 528.7 264.3 1,321.7 Reductions in CO2 emissions were calculated as follows: CO2 reduction CO2 reduction 103 TPY by 200Q 103 TPY by 2010 BAU Accel. BAU Accel. CH1 Renov. medium plants 0 93.3 0 280.0 CH2 Waste heat recovery 270.2 540.4 1,350.9 1,350.9 CH3 Membrane technology 0 352.2 176.1 880.6 Emissions 3.233 The chemical industry is a source of a wide variety of pollutants and waste materials. In 1990, the industry produced about 40 million tpy of solid wastes, of which 14 million tpy were produced from furnaces of all kinds. Gaseous wastes totalled about 700 billion cubic meters and liquid wastes about 6.9 billion cubic meters. 3.234 Solid wastes are very diverse and include unreacted materials, products that fail to meet specification, spent catalysts, ashes discharged from furnaces and from pollution control equipment, and muds from water treatment systems. The quantity of solid waste produced by the industry is substantial-typically, one ton of product is made in conjunction with 1-3 tons of solid waste (and sometimes as much as 12 tons). An indication of the quantities of important waste materials produced each year is given in Table 3.44 together with estimates of the proportion of materials that are used. Table 3.45 provides examples of waste products and their potential utilization. - 114 - Table 3.44: UTIZATION OF WASTE MATERIALS Annual Amount Percent Type of waste material production reused utilization 10 t 10 t Coal ashes and residues 11,200 10,700 95.5 Oil residues 75 59 78.7 Waste from caustic soda 1,300 210 16.2 Residues from FeS ores 7,700 5,800 75.3 Residues from yellow P 340 328 96.5 Industrial kiln slags 795 566 71.2 Waste water treatment sludge 236 210 89.0 Residue from carbide manufact. 1,128 843 74.7 Residue from chromium manufact. 110 45 40.9 Residue from soda ash manufact. 400 43 10.8 3.235 Large quantities of liquid wastes are also made by the chemicals industry, which consumes 13 billion cubic meters of water annually. Of this, about 6.9 billion cubic meters are discharged as liquid pollutants. It has been estimated that, on average, the recycling of water in the chemical industry is 35-40 percent, and the industry discharges about 0.05 tons of waste liquid per Y 10,000 output value. In some enterprises located in areas where water is scarce, water recycling has reached 80 percent, indicating the scope for improvement generally. 3.236 The chemical industry is also responsible for large quantities of waste gas discharges. It is estimated that about 25 million tons of CO2 and 0.85 million tons of S02 are emitted each year. Table 3.46 provides information on the quantities produced and extent of utilization of some major gaseous emissions. 3.237 In future, the absolute quantities of solid, liquid and gaseous emissions are expected to increase because the output of the chemical industry is expected to continue to grow at 6 to 7 percent annually. However, with improved energy efficiency and greater concern for pollutant reduction, emissions per unit of production will be decreased. G. PERoCamHmcAS Industry Profile and Products 3.238 The petrochemical sector is a major energy consumer, using energy resources both for operating plants and processes and as a raw material for most of the products. Most of the sector is under the overall management of the China Petrochemical - 115 - Table 3.45: CHEMICAL INDUSTRY RESIDUES Chemical industry Technology of Ciemical industry Technology of Chemical Technology of and its residue disposal residue and and its residue disposal residue and industry and disposal residue cprehensive comprehensive its sesidue and comprehensive utzaetion utilization utilization Inorganic industry Calcium carbide Technique of road Sulfuric acid residual building materials industry Chrom residue Dry-olidotal Phosphate Residual of Producing bricks technique fertilizer industry iron pyrite Making for coloring Yellow Techniques of making Technique of agent of glass phosphorous cement chloridetatment residual from by high electric furnace temperature Making for Ca-M-P Phosphorous Techniqueof Techniquoof fertilizer sludge producin phosphoric eractive acid by firnsg Au.Pe by cyama process Calcium-Iron power, Phosphor gypsum Technique of Waste Rooivery VA etc. producing sulturae caalyzer from catalyzer and cement containing vanadium Phosphorus sludge Produce phosphoric Technique of making Industry of acid by firing a Serswater gypsum organic raw powder and ball materials and sy"thetic processed materials Yellow Produce silicate Nitrogen fertilizer Waste liquor Reca-y phosphorous cement in blending industry residue from _que*r bly" electric furnace crystallaion process by stages Cyanogen residue Disposal technique of Cinder from gas- Technique of making Distillation Trestment waie hydrolysis oxidation making furnace cinder bricks waft liquor formaldehyde by high temperatue iqur by oandcasation ______ ___Pmoess Chloro-alkali Cinder from Technique of making Technique of industry furnace cinder brick treatment wase organ-fluorine liquor by burning Salt sludge contain Technique of disposal Techaiqueof making Pol sludge Techniqueof mercury sodium bypochlorite cinder brick burning msx-ng by oxidation process fool sludge la Technique of Waste catalyzer Technique of Dyeatuff chlorination and producing ZOCIA industry vulcanizing by firing comio d micro- fertilizer Salt sludge non- Technique of Technique of Wast residual Recovery eopper contain mercury producing magnesium recovery veclaim coGtaining sulfate from waste oxide with salt sludge platinum family copper residue containing metals copper Technique of seuling Sodium carbonate Waste liquor Recovery the paper and filtering process industry agent and waste acid from wasse chloride liquor Calcium carbide Technique of Waste liquor of Technique of Photosensitive residue producing cement by distillation producing calcium material CaC residual ammonia ad chloride and industry _ waste sale studge remaking sale Technique of Technique of Waste film Technology of producing bleaching producing Ca-M recovery waste film liquor by CaC fortilier and Ag residual - 116 - Corporation (SINOPEC) and this report covers primarily these activities, which include both oil refining and petrochemical manufacture. Table 3.46: WASTE GAS PRODUCrlON AND UTILZATION Annual Amount Percent Type of waste gas production utilized utilized 106 m3 106 m3 Calcium carbide furnace gas 9,840 128 1.3 Coke oven gas 1,500 1,410 94.0 Yellow P furnace gas 3,250 946 29.1 Fertilizer furnace gases 720 346 48.0 Electrolytic hydrogen 40 27 66.8 Benzene plant tail gas 240 29 12.0 Synthetic ammonia plant gases 39,744 28,218 71.0 Carbon black tail gas 3,520 2,288 65.0 Total 58L854 3331 l 3.239 In 1990, the total industrial output of SINOPEC reached Y 44.2 billion. The SINOPEC plants processed 96.9 million tons of oil out of 107.2 million tons processed in China. About 4 million tons of crude oil were imported in 1990. Products included: Product Quantity 103 t Gasoline, diesel, luboils 47.21 Ethylene 1.44 Synthetic fibers 0.40 Synthetic rubber 0.23 Ammonia 3.18 Urea 4.96 Organic products 3.21 Although the majority of products were sold domestically, SINOPEC also exported 33 million tons of finished petroleum products and petrochemicals in 1990. - 117- 3.240 Crude oil distillation capacity in China is 144 million tpy, of which 124 million is under SINOPEC. This ranks China fourth in the world in terms of distillation capacity, which is now equivalent to about 2.9 million barrels per day. With respect to ethylene production, China is ranked eighth in the world, with 1.96 million tpy capacity of which SINOPEC operates 1.82 million tpy. 3.241 From 1985 to 1990, SINOPEC has invested in technical renovations in about 300 main production units at a cost of Y 8.3 billion for over 900 major projects. 3.242 Data on the facilities and production of SINOPEC are given in Tables 3.47 and 3.48. Energy Use 3.243 The consumption of energy resources by SINOPEC has reached over 26 million TOE for fuels, power, and feedstock (equivalent to 37 million TCE). Energy consumption per Y 10,000 of output value was 4.84 TOE in 1989, broken down as follows: TOE per Average annual Y 10,000 reduction 1983-9 Refining 2.46 2.2 Petrochemicals 8.65 3.7 Chem. fibers 1.74 17.9 Fertilizers 22.42 2.0 Whole SINOPEC 4.84 3.6 3.244 The growth in energy use. has been quite rapid in recent years due to the commissioning of three large ethylene plants and associated downstream units. This has contributed to the noticeable emphasis on petrochemical and chemical fiber operations: - 118 - Fuel/power Feedstock Total Oil Petrochem & Chem 106 TOE % 106 TOE % 10' TOE refining chem fiber fert. Year Energy consumption - Percent by subsectors - 1983 10.47 71.4 4.19 28.6 14.66 37.3 34.9 27.8 1984 10.63 71.0 4.35 29.0 14.98 34.7 37.8 27.5 1985 11.03 69.2 4.01 30.8 15.94 32.8 38.4 28.3 1986 11.63 70.0 4.98 30.0 16.61 34.2 38.8 27.0 1987 11.76 67.9 5.56 32.1 17.31 34.8 40.5 24.8 1988 14.19 64.9 7.66 35.1 21.85 28.2 53.4 18.3 1989 13.63 61.2 8.65 38.8 22.28 28.8 52.4 18.9 1990 14.97 57.3 11.14 42.7 26.11 25.3 59.7 15.0 Table 3.47: ECONOMIC AND OTHER INDICATORS FOR SINOPEC, 1985-90 1985 1986 1987 1988 1989 1990 Industrial output value (Y billion) 1980 constant prices 30.0 32.6 35.4 39.2 41.8 44.1 Current value 33.7 38.7 43.2 50.0 58.8 63.2 Total staff (103 persons) 536 567 596 629 651 672 Of which, technical 49 53 59 69 74 78 Managerial 67 73 76 76 81 85 Fixed assets, original value at year end (billion RMB) 24.7 27.8 31.0 42.7 49.9 60.8 3.245 The energy consumption of each subsector may be subdivided further. Tables 3.49 and 3.50 give the position for oil refining. It will be seen that there has been a steady increase in the amount of energy contributed by coke burning in the FCC units, now up to about 23 percent of the total energy supply. This is probably due to greater demand for light products such as gasoline and diesel compared with heavy fuel oil requiring greater levels of cracking in the refining stage. 3.246 For the chemicals operations, the energy consumed in 1990 may be divided as follows: - 119 - Fuel & power Feedstocks Petrochemicals, chemical fibers 41% 59% Chemical fertilizers 35% 65% For the petrochemicals and fiber production, the fuel and power may be broken down further (data based on 1989 figures): Energy used for water supply 10.4% Electncity 17.4 Steam 39.9 Fuel for process heaters 30.2 Miscellaneous 2.1 100.0 Energy Efficiency and Trends 3.247 Efforts to improve energy efficiency have been maintained for several years. The results are shown for refining and petrochemical activities in terms of energy consumption per Y 10,000 in Table 3.51 and as kgOE per ton of crude processed for the refining industry in Table 3.52. Details of energy consumption improvements for a selection of major refining processes are given in Table 3.53 and for selected chemical processes in Table 3.54. In all processes, energy consumptions have been reduced steadily: for refining processes, the rate ranges from 1 to 6 percent per year, and for chemical processes from about 3 to 11 percent per year. For nitrogen fertilizer production, improvements have been made but at a slower rate-well below 1 percent per year, as shown in Table 3.55. 3.248 Figures for the lowest energy consumptions for selected processing operations are reported in Table 3.56 and compared with current levels of energy use, as reported in previous tables, in Table 3.57. Although good results have been achieved in. almost all areas, there remain significant differences between the energy efficiency of similar processes in China and overseas. 3.249 The improvements seen in the data for energy use in a wide range of processing operations have been achieved through technical revamping of units, replacing small old units by larger new units, and by close attention to management of the plants. Investments in energy conservation projects reached Y 890 million in the six years up to 1990: - 120- Table 3.48: OuTPUr OF MAIN PRODUCTS OF SINOPEC, 1985-1990 106 tons 1985 1986 1987 1988 1989 1990 Crude processed SINOPEC 79.04 85.65 90.00 93.28 96.23 9696 whole industry 84.50 91.58 97.18 101.61 105.28 107,23 % of total 93.5 93.5 92.6 91.8 91.4 90.4 Total oil products SINOPEC 37.72 41.86 43.43 44.88 47.03 4721 whole industry 39.88 44.24 46.45 48.43 51.12 52108 % of total 94.5 94.6 93.5 92.7 92.0 90.7 including Gasoline SINOPEC 13.46 15.39 15.83 17.12 18.39 1895 whole industry 14.38 16.47 17.12 18.66 20.21 31.16 % of total 93.6 93.5 92.4 91.7 91.0 89.5 Kerosine SINOPEC 3.94 4.05 4.07 3.73 3.85 3.75 whole industry 4.03 4.14 4.16 3.81 3.93 325 % of total 97.8 97.9 97.9 97.8 97.8 97.6 Diesel fuel SINOPEC 18.90 20.92 21.94 22.39 23.15 2201 whole industry 19.89 21.99 23.38 24.13 25.17 2537 % of total 95.0 95.1 93.8 92.8 91.9 90.5 Luboil SINOPEC 1.43 1.50 1.60 1.64 1.64 154 whole industry 1.58 1.64 1.79 1.83 1.81 1' % of total 89.5 91.4 89.3 89.3 90.4 91.0 Ethylene SINOPEC 0.55 0.59 0.82 1.11 1.27 1.44 whole industry 0.65 0.70 0.94 1.23 1.40 157 % of total 84.5 84.4 87.3 90.2 91.1 91.6 Plastics SINOPEC 0.50 0.56 0.73 1.03 1.20 136 whole industry 1.23 1.32 1.53 1.91 2.06 229 % of total 40.4 42.1 47.7 53.8 58.5 59.5 Synthetic rubber SINOPEC 0.13 0.13 0.15 0.19 0.22 024 whole industry 0.18 0.19 0.22 0.26 0.29 02 % of total 71.0 68.8 66.7 74.9 75.6 75.0 Synthetic fibers SINOPEC 0.31 0.31 0.33 0.35 0.38 0.40 whole industry 0.77 0.88 0.98 1.13 1.28 1A3 % of total 40.0 37.7 33.5 30.9 29.7 28.1 including monomers SINOPEC 0.49 0.51 0.53 0.59 0.61 0.78 whole industry 0.49 0.52 0.53 0.60 0.62 02 % of total 98.7 97.7 98.7 98.5 98.1 98.9 and polymers SINOPEC 0.45 0.46 0.48 0.49 0.50 0M whole industry 0.61 0.61 0.78 0.90 0.96 028 % of total 73.6 75.5 61.8 54.6 51.5 56.8 - 121 - Table 3.49: BREAKDOWN OF REFINERY FUEL AND POWER BY SOURCE Fresh Elect. Steam Heater FCC Percentages water fuel coke 1983 2.49 13.85 33.18 35.44 15.04 1984 2.40 14.31 31.57 36.45 15.27 1985 2.58 14.05 32.32 34.26 15.80 1986 2.60 15.54 28.75 35.53 17.58 1987 2.64 15.09 28.48 35.99 17.80 1988 2.54 15.80 28.39 33.36 19.91 1989 2.59 15.71 28.09 31.52 22.09 1990 2.76 16.04 28.00 30.68 22.52 Table 3.50: ALLOCATION OF REFINERY ENERGY CoNsuMPITON Units Storage Waste water Domestic Heat Power (Percent) & handling treatment uses loss. loss 1983 84.5 7.2 1.3 4.7 1.8 0.6 1984 84.4 7.5 1.3 4.5 1.8 0.6 1986 84.0 8.0 1.4 4.3 1.8 0.5 1987 84.2 8.0 1.2 4.3 1.9 0.5 1988 84.6 7.4 1.1 4.4 2.0 0.5 1989 85.3 7.4 0.9 4.1 1.8 0.5 1990 85.3 7.4 1.0 4.3 1.8 0.5 1985 1986 1987 1988 1989 1990 Total Y Million 112.3 144.2 193.6 195.5 115.1 129.0 889.7 3.250 The results of these energy conservation investments are estimated to have been savings of 0.9 million tons oil equivalent. It is estimated that the investment needed to save 1 ton oil equivalent is about Y 990 and the payback for the investment is on average.1.1 years. -122- Table 3.51: ENERGY CONSUMION PER Y 10,000 OLurn VALUE Tons oil equivalent per Y 10,000 1984 1985 1986 1987 1988 1989 %/yr SINOPEC 5.44 5.28 5.12 4.93 4.80 4.84 -3.6 Refining 2.70 2.59 2.52 2.51 2.37 2.46 -2.2 Petrochemicals 10.03 9.91 8.40 8.48 8.74 8.65 -3.7 Chemical fibers 4.14 3.56 2.01 1.93 1.84 1.74 -17.9 Chem. fertiliser 24.75 23.85 21.78 21.75 - 22.42 -2.0 Note: The energy consumption of three major new ethylene plants not included. Table 3.52: ENERGY CONSUMPHON FOR OIL REFINING 1984 1985 1986 1987 1988 1989 1990 %/yr Overall refinery energy use kg OE/ton crude 71.2 70.1 70.4 68.0 69.4 71.0 72.7 -0.02 Refinery processing kg OE/t crude 66.8 65.8 66.5 64.6 66.5 69.2 70.2 -0.05 3.251 Some specific measures that have been taken to improve energy efficiency are as follows: (a) Revamping refinery processing units by improving process efficiency and using higher efficiency equipment. (b) Increasing the recovery of energy, e.g., using multi-effect evaporators at Maoming to reduce energy consumption 34 percent; low temperature waste heat recovery; recovery of heat from stack gases. (c) Application of computers for improving management of facilities, optimizing energy use and improving product yields, e.g., computer control on 26 out of 39 FCC units and on 16 out of 64 crude distillation units; microprocessor control on 140 large process heaters raising combustion efficiency by 2-5 percent; refinery optimization at the Jinxi Complex reducing overall energy consumption by 3 percent; on-line control systems at 6 major fertilizer plants. - 123 - Table 3.53: ENERGY CONSUMPTION OF REFINERY PROCESS UNITS kg OE/t feed 1984 1985 1986 1987 1988 1989 1990 %/yr Atmospheric and vacuum dist. 14.6 13.6 13.0 13.4 13.2 12.3 12.3 -2.6 FCC 78.4 74.6 73.0 72.6 75.4 70.4 71.5 -1.0 Cat. reforming 159.9 160.4 161.4 153.6 146.7 147.2 131.0 -2.5 Thermal cracking 39.8 40.0 38.5 34.5 34.3 33.2 33.2 -3.9 Delayed coking 37.2 37.6 34.5 30.0 30.1 28.1 28.3 -5.2 Propane deasph. 58.6 54.3 50.5 45.3 44.2 40.9 39.2 -6.0 Phenol refining 60.1 56.2 55.7 48.4 46.9 48.1 46.4 -3.7 Furfural ref. 48.8 43.4 39.8 38.6 36.0 33.4 31.6 -4.4 Acetone/benzene dewaxing 98.6 92.3 75.3 72.8 67.9 65.3 66.0 -5.5 Table 3.54: ENERGY CONSUMPTION FOR CHEMICAL PRODUCTS AND FIBERS kg OE/ton 1984 1985 1986 1987 1988 1989 1990 %/yr Ethylene 1,354 1,252 - 1,222 1,240 1,225 1,121 -3.3 Polypropylene 626 618 521 453 473 423 422 -6.4 Butyl rubber 1,036 1,074 808 801 773 744 740 -5.5 Phenol 2,151 2,062 1,580 1,227 1,124 1,054 1,086 -10.8 Ethylene oxide 1,141 1,079 1,015 1,064 908 752 674 -8.4 Acrylonitrile 1,040 854 804 771 - 770 647 -7.6 Poly acrylonit. 2,700 2,670 2,571 - 2,450 2,445 2,401 -2.1 Terylene staple 792 608 596 401 380 382 366 -12.1 Vinylon 1,692 1,622 1,546 1,551 1,511 1,425 1,402 -3.1 Nylon staple 1,050 988 827 806 803 725 - -7.1 (d) Process improvement for FCC units and the increased deeper processing of heavier crudes. (e) Introduction of new ethylene plants and renovation of older facilities, especially pyrolysis furnaces, to increase ethylene yields from poorer feedstocks. - 124 - Table 3.55: ENERGY CONSUMPTION FOR NiTROGEN FERTiZER PRODUCTION kg OE/ton 1983 1984 1985 1986 1987 1988 1989 1990 %/yr 1,733 1,670 1,663 1,699 1,652 1,666 1,635 1,650 -0.06 Note: 1990 data includes high energy consuming Ningxia Chemical Works which entered operation. Potential for Improvement 3.252 The gaps between average energy consumption and the best recorded performance for a range of products and processes are shown in Table 3.57, indicating the possibilities for further improvement. For refinery processing, the difference is about 20 percent and for many chemical processes 30 percent, and for fertilizer production about 11 percent. Renovation measures need to be checked for economic viability but experience in many plants suggests that energy conservation is usually an attractive investment. It is therefore expected that energy efficiency will continue to rise by adopting many of the same technologies as applied already, such as those listed above. 3.253 In particular, efforts should continue to close down small and primitive crude oil refining facilities. For example, there are 56 small refineries with annual throughput under 500,000 tons, scattered through 14 provinces and cities: their total distillation capacity is 8.265 million tpy. Of these small refineries, 16 are run by oilfield administrations (3.99 million tpy) and 40 are run by local governments (4.275 million tpy). Tests at 12 of the better small refineries indicate that energy consumption runs about 60 percent higher than typical large refineries. In addition, a number of primitive processing units installed in the 1930s remain in service in spite of central government efforts to have them banned. About 3,000 such units in 1986 were reduced to 400 in 1990. Most of these use simple and obsolete equipment and yield perhaps 20 percent of their feed as petroleum products, often below specification. Excessive energy consumption is estimated to be 1 million tpy. 3.254 With respect to SINOPEC refineries, there are 34 in operation with an average crude distillation capacity of 3.65 million tpy which is about half the average of oil refineries in developed countries. The actual amount of crude processed in Chinese refineries in 1990 was under 3 million tpy (see Table 3.59). Production scale should therefore be increased to achieve higher energy efficiencies and better use of capital investments. 3.255 Another area where savings may be made is in the effective use of wellhead gas. About 13 percent of this is typically flared off and wasted. For example, the natural - 125 - Table 3.56: LOWEST REPORTED ENERGY CONSUMPTION VALUES Processing unit kgOE/t Year Location Refinery units Atmos/Vacuum distill. 10.6 1987 Maoming Petrochemical Co. FCC 59.0 1990 Refinery of Jilin Chem Co. Thermal cracking 49.2 1989 Maoming P.C. Delayed coking 20.4 1990 Dushanzi Refinery Cat. reforming 132.2 1989 Shenli Refinery Acetone/benzene dewax. 57.5 1988 Dushanzi Refinery Phenol refining 43.8 1990 Shanghai Ref, Gaoqiao P.C. Furfural refining 27.1 1989 Maoming P.C. Propane deasphalting 31.2 1990 Maoming P.C. Petrochemicals Ethylene 854.3 1989 Qianjin Plant, Yanshan PC HDPE 306.4 1989 Qianjin Plant, Yanshan PC LDPE 280.9 1989 Chem Plant 3, Liaoyang PC Phenol 874.4 1989 Xiangyang Plant, Yan.PC Ethylene oxide 576.8 1989 Chem Plant 2, Jinling PC Butyl rubber 711.3 1990 Shengli Plant, Yan.PC Chemical fibers Polyester 159.0 1990 Terylene Factory 2,Shanghai GPW Acrylonitrile 472.9 1990 Chem plant 2, Daqing GPW Acrylic fiber 2,282.7 1990 Acrylic Fiber Plt. Shanghai GPW Terylene staple 291.3 1990 Terylene Factory, Tianjin PC Vinylon staple 1,319.2 1990 Chem Fiber Pt. Sichuan Vinylon Chemical fertilisers Large scale N fert. 1,491 1985 Fert Pt 2, Qilu Petrochem Co. Ammonia consumed for urea prod'tion kg/t 582 1984 Fert Pt 2, Qilu Petrochem Co. Ammonia synthesis gas feedstock 865 1986 Fert Pt 2, Qilu Petrochem Co. naphtha feed. 881 1990 Fert Pt Jinling PC residual oil feed. 1,013 1987Fert Plant, Zhenhai GPW gas recovered and sold by pipeline from the Xinjiang oilfield is only 83 percent of total output (dropping to about 68 percent during the summer). The Daqing oilfield produces 2.5 billion m3 annually and yet sells only 1 billion m'. The Zhongyuan oilfield blew off and flared the equivalent of 1 million tons of crude oil from 1979 to 1985. The Anzhai oilfield produces 500,000 tpy of crude and 36 million m' of associated gas is unrecovered. - 126 - Table 3.57: SUMMARY OF CURRENT AND BEST ENERGY CONSUMPTIONS kg OE/t Average 1990 Best reported Difference % Refinery units Atm/vac distillation 12.8 10.6 21.3 FCC 71.5 59.0 21.3 Cat reforming 131.0 132.2 - Thermal cracking 33.2 19.2 73.3 Delayed coking 28.3 20.4 38.9 Acet/benz. dewaxing 66.0 57.5 14.8 Phenol refining 46.4 43.8 6.0 Furfural refining 31.6 27.1 16.7 Propane deashalt. 39.2 31.5 24.5 Chemicals Ethylene 1,121 854.3 31.2 Butyl rubber 740 711.3 4.0 Phenol 1,086 874.4 24.2 Propylene oxide 674 576.8 16.9 Acrylonitrile 647 472.9 36.8 Acrylic fiber 2,401 2,282.7 5.2 Terylene staple 366 291.3 25.6 Vinylon 1,402 1,319.2 6.3 Major fertilisers 1,659 1,491.0 11.3 A rough estimate suggests that about 80,000 tons of propane and ethane are lost every year from oil and gasfield in China. Additional recovery of light hydrocarbons could make a significant contribution to petrochemical feedstocks. 3.256 Improving product quality will also be a factor in the future. For example, the main part of the gasoline pool is 70 MON. Improved efficiency of gasoline driven vehicles can be achieved using higher octane fuels and it is planned to increase the proportion of FCC gasoline in gasoline blends. Diesel fuel often cannot meet the 45 cetane number specification: some refineries can barely reach 40. Efforts are therefore needed to increase cetane numbers, improve fuel stability and lower the pour point. 3.257 A program to reduce product losses by greater use of floating roof storage tanks for light products is needed. Potential savings have been estimated at 4.5 million tpy of products for an investment of Y 1.12 billion, equivalent to Y 250 per annual ton saved. 3.258 Finally, efforts will be made to improve the level of energy conservation management, both in a technical sense and by applying management principles. Some technical examples are: . -127- Table 3.58: FORECASTS FOR PRODUCr OUrPUTS 1990 1995-200 10W tons % 10' tons % 106 tons % Crude oil processed -107.23 150 200 Total products 96.88 100 125.05 100 157.92 100 Gasoline 21.16 21.8 29.14 23.3 37.13 23.5 Kerosene 3.85 4.0 6.18 4.9 7.65 3.8 Light oil for chemicals 7.85 8.1 16.58 13.3 21.64 13.7 Diesel oil 25.37 26.2 38.88 30.7 54.25 34.4 Luboils 1.69 1.7 2.99 2.4 3.92 2.5 Resid fuel oil 32.17 33.2 25.53 20.4 25.01 15.8 Bitumen 2.73 2.8 4.23 3.4 5.83 3.7 Pet. coke 1.36 1.4 2.07 1.7 2.44 1.5 Wax 0.69 0.7 - - - - Ethylene 1.44 2.30 3.45 Fuel and power for petrochemical industry 14.97 18.7 23.2 (a) Computer optimization techniques for operating units. (b) Pinch point (or process integration) techniques for optimizing heat exchange systems. (c) Improved combustion efficiency of fired heaters. (d) Improved trays and packing in fractionating towers. (e) Higher efficiency electric motors. (f) Improved process technologies (e.g., better catalysts in FC and naphtha reforming units, different solvents for luboil refining, and by equipment and process flow modifications of many kinds). (g) Waste heat recovery and utilization of recovered energy. - 128 - Table 3.59: CRUDE OIL PROCESSED IN MAJOR REFINERIES 10' tons, 1990 1 Yanshan Petrochemical Co. 6.54 2 Tianjin Petrochemical Co. 2.97 3 Fushun Petrochemical Co. (3 refineries) 8.01 4 Jinzhou Petrochemical Co. 2.45 5 Dalian Petrochemical Co. 4.76 6 Liaoyang Petrochemical Fiber Co. 2.69 7 Gaoqiao Petrochemical Co. 4.58 8 Jinling Petrochemical Co. 5.32 9 Yangzi Petrochemical Co. 2.30 10 Baling Petrochemical Co. 3.20 11 Maoming Petrochemical Co. 5.76 12 Lanzhou Chemical Industry Co. 0.63 13 Daqing General Petrochemical Works 5.32 14 Shanghai General Petrochemical Works 3.39 15 Lanzhou Petroleum Processing and Chemical Complex 2.76 16 Jinxi Petroleum Processing and Chemical Complex 8.80 17 Zhenhai General Petrochemical Works 2.78 18 Anqing General Petrochemical Works 2.57 19 Guangzhou General Petrochemical Works 3.05 20 Urumqi General Petrochemical Works 1.71 21 Shijiazhuang Refinery 1.38 22 Cangzhou Refinery 0.77 23 Qiangguo Refinery 0.99 24 Harbin Refinery 0.84 25 Linyuan Refinery 1.36 26 Jiujiang General Petrochemical Works 1.55 27 Jinan Refinery 1.36 28 Louyang General Petrochemical Works 1.57 29 Wuhan Petrochemical Works 2.02 30 Jingmen General Petrochemical Works 2.80 31 Dushanzi Refinery 1.84 32 Qilu Petrochemical Co. 6.72 Total 1Q21 million tons Projected Industry Outputs and Energy Consumption 3.259 Forecasts of growth in crude oil refining and trends in the output of selected refinery products are summarized in Table 3.58. Table 3.59 presents forecasts of ethylene production and overall fuel and power for the petrochemical sector. - 129 - 3.260 The changes in product mix in the future will influence refinery energy consumption because of the need to convert heavy oil fractions into light oils, partly for use directly as fuels and partly to increase the production of petrochemicals. There is likely to be a significant increase in the use of diesel as a fuel for transport at the expense of gasoline. At the same time, this increase may be offset by efforts to reduce the use of agricultural tractors for rural transport and to reduce the amount of diesel oil used. for power generation in TVEs (about 3 million tons will be used in 1995). Emissions 3.261 The petrochemical industry is a major energy consumer and also uses large volumes of water for process applications and cooling. Each year, the 30 large-scale petrochemical complexes discharge 760 million tons of waste water and 4.7 million tons of solid wastes. The main achievements of the industry in the period from 1986 to 1990 are as follows: (a) Waste water discharges have been reduced 3 percent and the amount of these meeting environmental standards has risen by 18.6 percent compared with 1985 (to reach a total of 84 percent of discharges). (b) Total COD discharged in 1990 was reduced by 24.9 percent compared with 1985. (c) Utilization of combustible gases reached 94 percent, an increase of 4 percent over 1985. (d) The proportion of toxic gases meeting emission standards reached over 90 percent. (e) The use of waste solid residues increased by 35 percent to reach a total of 80 percent. (f) The proportion of enterprises complying with noise emission standards reached over 95 percent. (g) Energy conservation contributed to a reduction in the quantity of fuel used of 2.25 million tons oil equivalent and a corresponding reduction in CO discharges of 7 million tons in the five-year period. 3.262 Currently the main objectives is to ensure that facilities meet environmental standards. This will require effective management of existing facilities and proper use of existing equipment, as well as modernization of facilities to control pollution sources. New techniques of environmental control need to be developed and disseminated. -The main quantitative targets are: - 130- Item Target Waste water disposal meeting emission standards > 85% COD discharges per 10,000 RMB output value < 18 kg Utilization of combustible gases > 95% Toxic gas emissions complying with standards > 95% Utilization of solid wastes > 90% Compliance with noise standards at the boundary > 95% H. EQIqPMENT Introduction to the Equipment Supply Industry 3.263 The machinery and electronic industries in China are large and complex, and play a key role in the national economy by providing a very wide range of equipment to the manufacturing industries, to agricultural enterprises, to the transport sector and indeed to all other energy consuming sectors. The activities of the industry include production of machine tools, electrical machines and motors, construction machinery, scientific and technical instruments, agricultural machinery, automobiles and trucks, ships, radios and televisions, computers, and all types of mechanical and electrical components and spare parts. 3.264 In 1990, the machinery and electronic industries consisted of 104,800 enterprises (excluding township and village enterprises) with 20.62 million employees. Total industrial output was Y 376.5 billion, about one quarter of Chinese industrial output. 3.265 The energy consumption of the mechanical and electronic industries themselves is not particularly large: it is about 1.6 percent of national energy consumption, including 16.52 million TCE of coal. Overall energy consumption was 1.013 TCE per Y 10,000 in 1990, reducing to 0.893 in 1991. Electricity use dropped from 960.2 kWh per Y 10,000 in 1980 to 800.1 in 1991. 3.266 However, the mechanical and electronic industries have a very important influence on Chinese energy consumption in terms of the type of equipment manufactured for the market and its performance (e.g., energy consumption, efficiency, service life, maintenance needs, capital and operating costs). In some cases, the domestic market can purchase modem equipment with good performance: for other items, the Chinese equipment lags behind similar items available in western countries in terms of energy efficiency and other technical features. 3.267 Because of the key role of equipment used by energy consumers in determining their energy consumption, a review of the mechanical and electronic industries - 131 - was made to determine the status of key products manufactured and to document the efforts being made to improve their quality and energy efficiency. The main products included electric motors, fans and pumps, compressors, industrial furnaces, steam traps and instruments. A separate study of boiler availability and performance was also made. Electric Motors 3.268 An indication of the scope of the electro-mechanical manufacturing industry is given by the production data presented in Table 3.60. Seven major items of equipment represent over half the national electricity consumption. Motors are the single most important electro-mechanical product, with applications throughout China in all sectors of the economy. 3.269 There are 1,180 motor factories with 58 key enterprises and 640 others under the Ministry, 408 county level factories and 74 others classified as TVEs. It has been estimated that there are now 152 major series of motors and more than 4,000 specifications of motors in China, with the present inventory representing 330 million kW installed load. The annual output of motors in the size range 0.55 to 200 kW is equivalent to 34 million kW: a breakdown by motor size is given in Table 3.61. Over 60 percent of electricity generated in China is used in motors, with motor losses totalling about 5 percent of national demand. 3.270 The main motor series are as follows: (a) Y series induction motors-available in sizes from 0.55 to 200 kW, these are the most common type of motor and they supersede the widely used I series. Their efficiency on average is 0.4 percent higher than the J series motors replaced. The annual output volume is equivalent to 20 million kW. (b) YCT series variable speed motors-available in sizes from 0.55 to 90 kW, these motors use an electromagnetic slipping clutch system to change speed. Ten plants provide an annual output of about 450,000 kW. (c) YD pole changing multi-speed motors-these are modified Y series motors with speeds adjustable in steps depending on the connections for the windings. .(d) YX series high efficiency motors-available in sizes from 1.5 to 90 kW, motor efficiencies are 3 percent higher than the standard Y series motors. Annual output. remains low at about 10,000 kW. 3.271 A comparison of motor efficiencies is shown in Table 3.62, showing the improvement of the Y series over the previous J series but also showing that efficiencies lag behind the developed countries. Table 3.60: MAJOR ELECTRICITY CONSUMING ELECTROMECHNICAL PRODUCTS Percent of Annual national Total Forecast Total in Main Approx. Annual electricity electric. output of output Total Item China manufact. varieties output consumption generated value increase employment 10' kWh % 10'Y pctlyear 10' Small and 0.35 x 10' kW 300 557 45 x 10' kW 32.5 5 6.0 18 200 medium-size elec. motors Blowers and 5 x 10' units 300 2,500 0.2 x 10' units 65 10 1.0 16 50 fans, inc. motors Water pumps 20 x 10' units 923 1,282 4.2 x 10' units 130 20 2.0 17 70 Air lx 10' units 161 303 45 x 10' units 58.5 9 1.44 15 60 compressors Power 0.8 x 10 kVA 200 1,155 87 x 10' kW 13 2 3.0 17 90 tmnsformers Electric 0.7 x 10' units 60 76 0.6 10' kW 32.5 5 0.27 13 13 furnaces Electric I x 10' units 120 83 0.1 x 10' units 3.25 0.5 0.38 14 20 welders Total 330 51.5 - 133 - Table 3.61: SIZE DISTRIBUTION OF ANNUAL MOTOR OUTPT Rate power Annual output Rated power Annual output kW 103 kW kW 103 kW 0.55 55 22.0 2,500 0.75 75 30.0 2,300 1.1 150 37.0 2,000 1.5 600 45.0 1,900 2.2 800 55.0 1,800 3.0 1,000 75.0 1,500 4.0 1,400 90.0 1,000 5.5 2,000 100.0 1,000 7.5 2,500 110.0 900 11.0 3,000 132.0 800 15.0 3,000 160.0 700 18.5 2,800 200.0 400 Table 3.62:- COMPARISON OF MOTOR EFFICIENCIES Power China USA USA France kW Y series YX series J02 ser. MAC XE M2E 1.5 79 81.5-84.0 5.5 88.5 89.5-90.2 86 88.5-90.2 88.5-90.2 7.5 87 90.3-90.7 87 88.5-90.2 88.5-90.2 22 91.5 93.0-93.5 89.5 91.7-93.0 91.7-93.0 92.5 .55 92.6 94.2-94.8 91.5 93.0-94.1 94.1-95.0 94.4 75 92.7 94.6-95.0 92 94.1-95.0 94.1-95.0 95.0 90 93.5 94.8-95.2 94.1-95.0 94.1-95.0 95.4 3.272 . According to available statistics, the annual repair rate of small motors is about 3-5 percent of the population or about 10 million kW. Most repairs involve stator rewinding. The largest motors are repaired in motor manufacturing plants or in large enterprises but smaller motors are repaired in factories or in repair shops. It is believed there are 100 small repair firms around the country, often with very basic equipment and lacking strict technical supervision. Better control of motor rewinding could contribute to maintaining higher motor efficiencies and thus saving energy. - 134 - 3.273 Another means of saving energy in many applications is the use of variable or multi speed motors. The most common equipment in China is the electromagnetic clutch or the pole changing motor. Unlike many developed countries, there is relatively little use of variable frequency control systems. These devices lead to much greater energy savings but their cost is higher, as Table 3.63 shows. There is a good potential for saving energy, both by greater use of variable frequency equipment and by a greater adoption of variable speed controls in general. Table 3.63: COMPARISON OF MEHODS FOR SPEED ADJUSTAENT YCT YD pole Variable frequency electromagnetic changing device motors motor Principle Change slip Change pole Change frequency number Application For stepless speed Stepped speed Stepless speed adjusting adjusting adjusting Maintenance Easy Easy High technical requirement Reliability High High Can vary Interference with power supply No No Can interfere Cost Y 300/kW Y 200/kW Y 1,000/kW Power factor High Fairly high High Energy saving About 20% About 20% About 30% Forecast demand (10' kWh) 1993 400 400 180 2000 2,800 2,650 350 Number of > 20 > 30 > 10 manufacturers - 135 - 3.274 Finally, it is worth noting that the replacement of J series motors by Y series has already resulted in electricity savings. However, even though the manufacture of J series motors is restricted, it is known that some enterprises still produce them. The J motors are cheaper and are often selected for rural enterprises. Stricter enforcement of regulations restricting the use of old and inefficient J motors could lead to useful savings in electricity. Fans 3.275 The total number of fans and blowers of all types is around 5 million, consuming about 10 percent of national electricity production (about 65 billion kWh per year). About 400,000 new fans are made annually. It is estimated that about one quarter of these new fans are energy efficient new designs. 3.276 There are over 300 firms making fans, most of them being TVEs. About one third can be considered large companies with good capabilities. There are 85 firms which are members of the Fan Institute of the China General Machinery Corporation and these are widely dispersed throughout the country (Table 3.64). For the whole fan industry, employment was 51,390 in 1990, including 4,207 technicians and 7,209 management staff. 3.277 The industry may be divided into 7 basic groups of products-centrifugal compressors, axial flow compressors, centrifugal blowers, Roots blowers, vane type blowers, and centrifugal and axial flow ventilators. Data on the annual production levels are given in Table 3.65. Overall, there are about 2,500 different products. 3.278 With respect to technological level, it is judged that the large centrifugal and axial flow compressors have reached the international level of the mid-1980s, while low pressure axial flow fans are at the level of the late 1970s. Many fan manufacturers are only just beginning to utilize modern design techniques such as CAD/CAM. For some of the largest fan and blower applications, imported equipment has to be used. The medium and smaller companies lack modern machine tools with fully computerized operation. 3.279 In spite of the backward technology possessed by some firms, efforts are being made to improve fan and blower efficiencies and to upgrade the quality of the products. Several agreements have been made to import more recent technology for selected types of fans and further technology transfer arrangements are planned. It was estimated that adoption of newer designs for over 45,000 equipment sets saved 414 million kWh in 1989. This is under 1 percent of the energy consumed in fans and blowers and therefore there remains a very large potential for energy saving. 3.280 Some difficulties exist, however: for example, many users are unwilling to adapt equipment foundations to install more recent and more efficient machinery. There is also the problem of low efficiency designs being cheaper and easier to make, allowing small firms to sell products with outdated technologies when users fail to make proper life- cycle cost comparisons. - 136- Table 3.64: MAJOR FAN MANUFACTURERS 1990 Fixed Production Name of Company Employees assets Area m2 equipment (Y 10,000) (unit) Northeast Area Shenyang Blower Works 4,161 19,152 300,382 374 No. 1 Branch of Shenyang Blower Works 707 782.1 50,430 92 Shenyang Ventilator Co. 1,043 1,640 113,600 176 Shenyang People Ventilator Co. 917 1,002 51,000 107 Shenyang Cold warm Ventilator Co. 948 1,117.6 38,754 66 Anshan Ventilator Co. 711 627.7 28,265 88 Yingkou Ventilator Co. 252 162 22,500 44 Dalian Ventilator Co. 350 1,989.5 11,640 47 Jingzhou Ventilator Co. 267 267,3 12,762 74 Jilin Blower Co. 669 820.3 40,300 90 Siping Blower Co. 891 1,174.2 115,416 69 Siping Ventilator Co. 453 139 5,120 39 Harbin Ventilator Co. 510 144.5 8,772 56 Harbin Blower Auxiliary Co. 327 82.8 6,872 39 Jinausi Blower Co. 730 693.5 64,498 120 Zhaodong Ventilator Co. 310 203.1 90,628 45 North China and Northwest China Area Shanxi Blower Co. 3,337 7,551.2 444,440 277 Shanxi Lishan Ventilator Co. 340 171.1 13,332 38 Xian Ventilator Co. 362 220.5 16,370 46 Xian Chaoyang Ventilator Co. 161 65.6 7,693 28 Beijing Blower Co. 1,749 1,195.2 51,203 136 Beijing Ventilator No. 2 Co. 509 1,388.4 32,439 68 Tianjin Blower Co. 706 1,081.1 29,363 116 Tianjin Ventilator Co. 501 331 17,233 72 Tianjin Warm Ventilator Co. 423 448 10,893 39 Shijiazhuang Ventilator Co. 273 778.8 21,800 108 Baoding Ventilator Co. 627 1,056.4 68,040 84 Xuanhua Ventilator Co. 224 197.8 36,377 33 Yuanping Blower Co. 512 527.3 114,116 88 Huhhot Ventilator Co. 180 200.5 18,584 32 Bactou Ventilator Co. 342 259 63,480 41 Jinyuan Ventilator Co. 153 250.1 32,253 50 Yinchuan Ventilator Co. 316 1,037 454,741 122 Xinjian 7.1 Ventilator Co. 322 252.4 14,848 73 - 137 - Table 3.64: cont'd Fixed Production Name of Company Employees assets Area m2 equipment (Y 10,000) (unit) East China Area Shanghai Blower Co. 2,040 4,648.3 121,242 307 Shanghai PengJiang Machinery Co. 152 76.5 2,600 27 Shanghai Great Wall Blower Co. 632 213 8,762 64 Nanjing Blower Co. 533 272.2 29,119 77 Yixing Blower Co. 273 155.2 14,343 32 Changshu Blower Co. 516 675.6 46,800 84 Yangzhou general Ventilator Co. 178 143.9 9,027 27 Nantong Ventilator Co. 681 804.3 36,562 90 Ningbo Ventilator Co. 447 746 43.23 88 Yuyao Ventiator Co. 125 148.2 9,045 31 Zhejiang Shanlu Ventilator Co. 516 859 48,000 90 Fujiang Blower Co. 327 334.5 50,020 96 Jinan Ventilator Co. 847 1,015.7 41,850 119 State-owned Jinan Ventiator Co. 182 194 8,800 45 Jinan No. 2 Ventilator Co. 274 153.3 18,000 27 Shandong Power Equipment Co. 776 2,435.4 115,061 140 Qindao Ventilator Co. 468 498.9 27,111 64 Zhaozhuang general Machinery Co. 516 482.1 102,087 54 Zhibe Ventilator Co. 326 128.2 19,200 28 Shandong Zhangquo Ventilator Co. 621 764.7 81,272 147 Weihai Ventilator Co. 156 189.2 25,020 32 Fuzhou Blower Co. 459 708 87,042 167 Fuzhou Chemical Machinery repairing Co. 316 103.77 14,904 44 Anhui Ventilator Co. 525 781.3 72,782 .77 Nanchang Blower Co. 420 311.1 37,490 54 Pingxing South Coal Machine Co. 117 127 8,046 46 - 138 - Table 3.64: cont'd Fixed Production Name of Company Employees assets Area m equipment (Y 10,000) (unit) South Middle and South-West Area Wuhan Blower Co. 2,037 4,086 257,960 227 Wuhan Silencer Co. 358 51.23 7,000 13 Wuhan Ventilator Co. 219 262.2 12,335 41 Hubei Ventilator Co. 563 556.8 44,940 55 Yichang Blower Co. 91 62.12 7,425 35 Changsha Blower Co. 1,511 3,092.6 224,171 183 Changsha No. 2 Ventilator Co. 263 3098.9 61,000 57 Changsha Xiangjiang Ventilator Co. 249 178.2 64,119 50 Chongqing General Machinery Co. 3,288 5,044.3 305,471 290 Chongqing Blower Co. 298 222.3 16,112 34 Chongqing Jiangbei Ventilator Co. 314 187.1 7,710 30 Chengdu Power Machinery Co. 1,507 2,903.8 96,326 152 Chengdu Ventilator Co. 221 196.3 72,000 36 Sichuan Blower Co. 531 454.6 38,056 66 Sichuan Chunabei Ventilator Co. 186 290.5 25,000 42 Xiniang Blower Co. 517 465.2 52,043 58 Henan Zhoukou Ventilator Co. 656 556.9 56,916 80 Guiyang Blower Co. 324 155.2 7,000 47 Guiyang No. 2 Blowre Co. 303 263.5 51,200 56. Guangzhou Ventilator Co. 384 446.6 59,194 58 Foshan Ventilator Co. 439 570 81,000 100 Wuzhou Ventilator Co. 197 132.1 11,000 33 Dali general Machinery Co. 436 436.7 32,052 57 Gejiu Ventilating Machinery Co. 213 134.3 2,346 30 - 139 - Pumps 3.281 The Chinese pump industry is very large, consisting of 923 enterprises employing 200,036 personnel in 1990 (excluding village level firms). There are over 20 million water pumps throughout the country and typically 4.2 million new pumps are made each year. The associated electricity consumption amounts to 20 percent of the national electricity demand: diesel powered pump sets consume about 5 percent of the national diesel oil consumption. 3.282 There is a wide variety of pumps made but single stage and single suction clean water pumps represent 50 percent of the output. There are around 100 pump manufacturers, amongst which there are estimated to be 16 major pump manufacturers with technology transfer arrangements with foreign firms (e.g., from the USA, Germany, UK, Australia, Switzerland and the former Czechoslovakia. Overall, the standard of Chinese pumps is judged to be at the level of western countries in the early 1980s. In terms of efficiencies, it is believed that the average test efficiencies of Chinese pumps are 2- 5 percent lower than comparable foreign products. Nevertheless, the latest pump designs do represent a major improvement over older designs which are gradually being phased out. Table 3.65: FAN PRODUCTON DATA 1989 1990 1991 Centrifugal compressor 79 59 38 Axial flow compressor 3 3 1 Centrifugal blower 422 795 656 Roots blower 5,340 4,549 4,070 Vane type blower 257 126 154 Centrif. ventilator 116,737 97,432 99,830 Axial flow ventilator 51,973 48,141 42,289 Other types 9,238 22,608 38,135 Total 184.139 173713 185.173 3.283 Unfortunately, the improvements in efficiency of many pump products on offer to the market may not be achieved by many users. Existing pumps are often incorrectly sized and operate well below design efficiency (sometimes at half the design figure). Manufacturing techniques vary greatly and there are still some enterprises making products at the level of western countries in the 1950s and 1960s. In such firms, the quality of internal castings is poor and the reject rate is 10-13 percent. The reject rate of impeller castings may reach 40 percent, while the comparable figure in western firms - 140 - might be 3 percent. Low machining accuracy and large tolerances lead to higher materials and energy consumption of the manufacturers, and can contribute to a lower energy efficiency of the products also. 3.284 The potential for saving energy by pump users is substantial. The efficiency of new pump types is typically 5 to 10 percent better than older designs, better manufacturing techniques could give pumps with better performance characteristics, and proper application of pumps (e.g., correct type for the application,. correctly sized) could add say 10-20 percent savings, a total of perhaps 30 percent energy savings. Compressors 3.285 There are about 1 million compressors in China-excluding fans, blowers and refrigeration compressors-of which small units with capacity under 1 m per minute represent 75 percent. Electricity consumption is about 9 percent of national demand, and domestically made compressors take 7 percent of the national electric motor production for motors in the range 0.2 to 4,000 kW. 3.286 There are 161 compressor manufacturers (including 7 key enterprises under the Ministry of Machinery) and 37 accessories plants. The most important firms are: Key Enterprise Shenyang Gas Compressor Factory B/L Shanghai Compressor Factory B/L Huaxi General Machinery Company BIL * Beijing No.1 General Machinery Company BIL Wuxi Compressor Works A/M ** Bengbu Compressor Factory A/M Liuzhou No.2 Air Compressor Factory A/M * Large Scale Plants Shenyang Air Compressor Factory A/M Shanghai No.1 Compressor Factory B/M ** Nanjing Compressor Factory AIM Jiangxi Gas Compressor Factory B/M Liuzhou Compressor Factory A/M ** Xiangtan Compressor Factory B/M Chongqing Gas Compressor Factory B/M Yuyao General Machinery Factory B/M Changde General Machinery Factory B/M Zigong Compressor Factory B/M Classifications are: A/M Class A medium scale B/L Class B large scale B/M Class B medium scale ** Firms whose statistics are in Table 3.68 under "important firms." - 141. - 3.287 In 1987, the China Compressor Association was established and this now has 131 members, including one research institute, two universities, and a range of manufacturers. The Association is subordinate to the China General Machinery Industry Association. Statistics for the compressor industry are presented in Table 3.68: the data are given for 85 firms in the information division of the Association for which statistics are collected routinely. 3.288 The overall efficiency of domestic compressors is now about the same as that for imported machines, although reliability and available accessories such as control systems do not match the imports. This is mainly because of poorer manufacturing processes and design factors. Many manufacturers use old and backward machining methods. As there are a large number of manufacturers in China, production batches are small and manufacturing costs are high, quality is unreliable and the manufacturing process itself consumes high amounts of energy. Quality variability can of course affect operating reliability adversely. 3.289 As an example of the problem of small-scale production, miniature air compressors may be quoted. The annual production is about 100,000 units from 80 plants. There are only 7 enterprises which produce more than 5,000 units per year: Compressor Factory Units made, 1991 Dafeng CF 18,171 Nanjing No.2 CF 8,380 Shanghai No.2 CF 7,185 Beijing Small Size CF 6,673 Shanghai Tonglian CF 6,467 Ma'anshan CF 5,998 Guangzhou Air CF 5,996 Total 1820 Balance from 73 plants 73 x avg 560 units/yr 41,000 The 73 plants which produce relatively few units each year operate at relatively low production efficiency. 3.290 Although operating efficiency of domestic compressors are now quite good, it must be recognized that some older designs were rather poorer. Most old compressors remain in operation in Chinese factories. For example, about 50 percent of chemical fertilizer output comes from small-scale plants mostly using old types of compressor. - 142 - Phasing out such compressors could make a substantial contribution to energy savings in the chemicals industry. 3.291 In.addition to checking the performance of the compressors themselves, it is important for manufacturing plants to ensure that drive motors are properly sized to match compressor characteristics. Indeed, a high efficiency compressor coupled with an inappropriate motor presents a good opportunity for energy saving. Industrial Furnaces 3.292 The total energy consumption of industrial furnaces represents about one quarter of the national energy demand. Most furnaces are built for specific requirements and are non standard equipment. Since 1989, some supervision of furnace designs and performance has been exercised by the Industrial Furnace Institute of the Fifth Design and Research Institute affiliated to the Ministry of Machinery and Electronics Industry. There are about 200 furnace product manufacturing plants in China, most of them being small to medium-size enterprises or TVEs. There are no large-scale industrial furnace manufacturers yet. 3.293 There are more than 110,000 furnaces of various types in factories above the TVE level. The annual energy consumption of these is 160 million TCE. Including TVEs, the number of furnaces is about 180,000 consuming over 190 million TCE/year. A breakdown of industrial furnace users by type of industry is given in Table 3.66 and by type of furnace operation in Table 3.67. Table 3.66: INDUSTIUAL FURNACES-NUMBER AND ENERGY CONSUMION IN MAJOR INDUSTRIES 'Ie furnace The proportion Energy consumption energy consumption of furnace Number of industrial of furnace and kiln proportion energy consumption furnace and kiln (xt0r ton standard coal/yr) to the total energy of the departient Electric Fuel Electric Fuel consumption of the to the oal of Department furnace furnace Sum furnace furnace Sum department (%) which in China (%) Metallurgy 730 4,147 4.877 335.0 4,083.00 4,418.00 79.60 2730 Nonferrous metal 2,202 448 2.650 194.76 154.86 349.62 33.81 2.16 Building material 196 15,733 15,969 67.6 5,331.58 5,399.18 87.70 33.36 Light industry 17 5,467 5,484 69.38 605.54 674.92 15.04 4.17 Chemical industry 511 8,177 8,688 401.00 3,726.00 4.127.00 53.00 25.50 Oil chemistry 611 611 539.80 539.80 35.80 3.34 Machinery 19,467 18,120 37,587 131.19 328.27 459.46 33.00 2.84 Weapon 8,260 1,732 9,992 31.36 43.51 74.87 20.74 0.47 Aviation 9,117 988 10,105 11.80 11.60 32.40 21.70 0.15 Shipping 1,472 793 2.265 1.20 8.40 9.60 19.32 0.06 Railway 3.345 4,960 8,305 1C.28 48.72 65.00 2.80 0.41 Electronics 6.600 520 7.120 15.50 23.30 37.80 31.50 0.24 Total 51,917 1,736 113,653 1,275.07 14,903.8 16,178.65 56.54 100.00 - 143 - Table 3.67: ENERGY CONSUMED BY VARIOUS TYPES OF FURNACE AND KILN Energy consumption x 104 tons standard Proportion of the total Kind of furnace coal/yr % Firing furnace & kiln 5,688.66 35.16 Smelting furnace & kiln 4,258.86 26.32 Chemical industry furnace & kiln 3,498.19 21.62 Furnace for metal reheating 695.73 4.30 Oil chemistry heating furnace & kiln 610.00 3.77 Sintering furnace & kiln 592.40 3.66 Heat-treatment furnace & kiln 229.49 1.42 Roasting furnace & kiln 193.34 1.20 Drying furnace & kiln 93.78 0.58 Others 318.20 1.97 Total 16,178.65 100.00 3.294 In general, the energy consumption of furnaces in China is much higher than in comparable operations in developed countries. For example, electric furnaces for steel production consume on average about 300 kWh/t of product, around 50 percent higher than typical electric furnaces in developed countries. It is estimated that energy savings from the adoption of better furnace designs and their correct operation could amount-in many industries-to about 30 percent. 3.295 To achieve such savings, many measures need to be taken. For example, combustion control needs to be improved. New burner designs are needed, to improve air/fuel mixing and to allow more rapid furnace warm-up times. The use of computer controls may be justified on larger equipment. Heat recovery from exhaust gases could be applied on many furnaces,. with the recovered energy used to preheat incoming combustion air. Better refractories need to be used to line furnaces to reduce heat losses from the structure itself. 3.296 While the benefits of these and other measures are generally well known, improved technologies are limited in application for a number of reasons: (a) Industrial enterprises are short of investment funds. (b) Enterprise managements are often unaware of the potential benefits. (c) There is a lack of technical manpower at enterprises to design and implement improvements. - 144 - (d) Incentives to plant personnel to save energy in furnace operations are absent. Steam Systems and Traps 3.297 The efficient distribution of steam or hot water from boilers to the users is a major factor in the energy consumption of most enterprises. Compared with developed countries, the overall efficiency of steam systems is rather low. Some typical figures illustrate the differences: China W Europe * Steam generation 55-60% 80-90% Distribution piping 85-90% 95-98% Combined efficiency 46-54% 76-88% * Steam using equipment, say 35-40% 60-70% * Overall system efficiency 16-22% 45-62% Boiler operation is clearly a major area for improvement. However, the potential for energy saving is also significant through the reduction of losses in the distribution system itself. These losses result from a combination of poor insulation, incorrect pipe diameters, inappropriate piping layouts, and poor condensate drainage and air venting caused by insufficient or poorly performing steam traps. There is also a lack of certain types of auxiliary equipment, such as automatic condensate pumps. 3.298 There are about 45 steam trap manufacturing plants in China. The traps available from Chinese manufacturers are often not well made and have short service lives (say 3-4 months compared with a European, Japanese or US steam trap which would last say 1-2 years in the same duty). The poor trap quality causes additional maintenance and many users prefer not to replace a defective trap or do not install a trap at all where one is really needed. There is a lack of customer service orientation by the trap manufacturers, with little assistance to customers to select the right type and size of trap, insufficient marketing effort, and little or no after sales service. 3.299 There is therefore a major opportunity to save energy by the promotion of better distribution systems and better steam traps. Through these measures, savings of at least 10 percent of the steam currently generated should be easily achieved over the next 5-10 years for relatively little capital expenditure. - 145 - Boilers 3.300 There are about 430,000 industrial steam boilers in China-excluding those used in power plants, locomotives and ships-and these consume 300 million TCE while producing up to 980,000 tons per hour of steam or steam equivalent. The energy consumed is about one third of the national energy demand. The importance of efficient boilers is therefore obvious and a special study was carried out on this topic in conjunction with the Greenhouse Gas Project. 3.301 The report of the boiler study provides comprehensive data on industrial boilers in service in China and most of these data are not repeated here. However, a few important facts may be summarized as follows: (a) There are 280,000 steam boilers with a thermal capacity of 700,000 tph of steam. There are 150,000 hot water boilers with a thermal output of 200,000 MW (28.5 percent of the total thermal capacity of boilers). Boilers are widely distributed throughout China (Table 3.69). (b) Of these boilers, process industries use 195,000 units (580,000 tph) while the residential sector uses 235,000 units (400,000 tph or equivalent). (c) The most widely used type of industrial boiler is a horizontal packaged boiler based on a combined water tube and fire tube design, representing more than 60 percent of the existing stock. Water tube boilers represent about 25 percent of thermal capacity, and small vertical boilers of various types represent about 15-20 percent. (d) Boilers fired by chain grate stokers are almost 60 percent of capacity and 65 percent of the number of units. Reciprocating grate stokers represent about 20-25 percent, spreader stokers less than 1 percent. The remaining capacity is mostly hand stoked boilers. (e) Almost all industrial boilers fire raw, unwashed coal. About 5 percent of the capacity fires oil or gas. Of the coal fired in boilers, the following breakdown is estimated: Type of coal Percent of capacity Bituminous coal 75.6 Anthracite 9.7 Low grade coal 9.1 Lignite 5.6 - 146 - Table 3.68: STATISTICS ON COMPRESSOR MANUFACTURE, 1987-1991 Data for 85 firms in the statistics network of the China Compressor Association. 1987 1988 1989 1990 1991 Industry gross production value, Y 10 85 firms 850.9 1,026.4 1,096.1 1,261.1 1,440.1 14 important firms 442.1 518.5 613.5 813.6 795.2 Average workers 85 firms 61,197 61,802 62,789 62,564 63,220 14 firms 26,094 26,582 30,171 30,291 31,138 Metal working machines 85 firms 9,096 8,931 9,706 9,351 9,262 14 firms 3,598 3,424 3,907 3,957 3,898 Castings, tonnes acceptable 85 firms 43,754 50,369 48,089 37,976 40,719 14 firms 25,180 29,048 30,440 24,525 26,063 Castings, tonnes unaccept. 85 firms 5,239 6,555 6,545 5,064 5,009 14 firms 3,107 3,482 3,876 3,248 3,119 Steel used, tonnes (% utilised) 85 firms 49,078 50,923 46,730 38,739 43,900 (63.4) (64.5) (64.6) (66.1) (65.5) 14 firms 22,213 22,734 21,961 17,887 20,293 (59.6) (63.6) (65.0) (64.8) (64.2) Energy use, TCE 85 firms 124,017 122,805 119,750 104,978 112,926 14 firms 60,392 64,208 70,031 60,446 64,092 Energy use, 103 kWh 85 firms 84,079 86,035 83,607 74,929 82,276 14 firms 44,204 43,641 47,034 40,678 45,953 Production, Total compressors 85 firms units 135,423 126,040 122,203 113,428 114,139 103 kW 1,456.9 1,789.4 1,736.5 1,516.0 1,554.8 14 firms units 8,604 8,892 10,459 9,061 9,316 103 kW 755.1 932.5 1,001.9 850.4 804.1 - 147 - Table 3.69: STATISTICS ON THE EXISTING INDUSTRIAL BOILER STOCK IB quantities (sets) IB evaporation capacity (t/h) Region Home Production Total Steam Hot water Home Production Total Steam Hot water Nation total 2236,300 195,801 432,101 282,475 149,626 400,544 582,541 983,085 702,466 280,619 Beijing 14,025 6,813 20,838 7,857 12,981 31,621 20,794 52,415 22,878 29,537 Tianjing 8.021 6,264 14,276 9,201 5,066 11,093 12,808 23,901 17,124 29,537 Hebei 16,412 14,540 30,952 17,650 13,302 29,994 40,357 70,351 46,342 24,009 Shanxi 11,755 6,545 18,300 10,470 7,830 35,301 22,125 57,426 37,963 19,463 Neimeng 12,728 4,383 17,111 5,677 11,434 22,933 12,514 35,447 14,274 21,173 Liaoning 31,465 13,403 44,868 20.984 23,884 61,647 47,353 109,000 56,420 52,580 Jilin 18.573 7,478 26,051 9,279 16,772 28,693 32,511 61.204 35,085 26,119 Heilongliang 35,541 10,177 45,688 13,752 31,966 52,521 26,921 79,442 34,368 45,074 Shanghai 3,720 6,495 10.215 10,191 24 1,521 9,294 10,815 10,805 10 Jiangsu 6,444 17,764 24,208 23,865 243 5,473 38,153 43,626 42,842 784 Zhejiang 6,973 9,358 16,311 16,320 11 2,420 16,773 19,193 19,126 67 Anhui 3,432 4,685 8,117 8,020 97 4,181 13,036 17,217 16,936 231 Fujian 1,843 4,541 6,384 6,326 58 1,036 9,619 10,655 10,638 17 Jangxi 3,470 4,693 8,163 7,899 264 2,760 13,670 16,430 16,389 41 Shandong 14,418 16,457 30,875 23,337 7,538 22,831 48,154 70,895 56,435 144,550 Henan 5,023 10,864 15,890 15,010 877 10,669 29,940 40,609 38,238 2,371 Hubei 4,622 7.472 12,094 11,526 568 11,676 18,736 30,412 29,443 969 Hunan 7,466 7.195 14,661 14,521 40 8,103 26,971 35,074 34,954 120 Guangdong 1,438 7,561 8,999 8,143 856 1,351 22,879 24,230 24,111 119 Guangxi 1,649 3,460 5.109 5,105. 4 1,709 11,301 13,010 13,007 a 3 Hainan 34 375 409 407 2 40 689 729 728 1 Sichuan 3,387 8,851 12,238 12,091 147 3,376 25,341 28,717 28,573 144 Guizhou 2,094 2,153 4.247 4,140 107 2,781 6,010 8,791 8,661 130 Yunnan 3,528 3,046 6,574 4,759 1,805 2,580 21,691 24,271 23,908 363 Xizang 367 135 502 454 48 589 597 1,286 1,159 127 Shanxi 3,622 4,807 8,429 6,811 1,,618 9,056 13,133 22,189 19,433 2,756 Gansu 4,755 3,624 8,379 4,241 4,138 9,910 18,059 27,969 19,152 8,817 Qianghai 1,786 707 2,493 1,505 988 4,581 2,480 7,061. 4,144 2,917 Ningxia 1,755 902 2,657 1,314 1,343 4,725 3,619 8,345 4,652 3,693 Xinjiang 5,963 1,053 7,016 1501 5,515 15,321 18,439 33,760 20,753 13,007 (f) The existing stock is dominated by medium and small boilers. A survey of 13,930 boilers in Beijing showed: Evaporation rate tph Percent of capacity <1 12.9 2-4 65.4 > 6 21.7 (g) Boilers often operate under low load conditions, high carbon levels in the ash, high excess air ratios and high stack gas temperatures. As a result, combustion efficiencies are usually low. Various surveys of hundreds of boilers in Guangzhou, Lanzhou and Shanghai, for example, show that the typical combustion efficiency ranges from 50-78 percent, even though - 148 - prototype testing gave results 10-15 percent higher. Table 3.70 presents the results of some of these surveys. (h) With respect to pollutant emissions, coal consumption is about 30 percent of the national total while dust emissions from boilers are about 36.6 percent of the total, S02 emissions are 38.8 percent and CO2 emissions are over 500 million tpy. 3.302 While the boiler study identifies some technical areas where improvements can be made to new boiler designs, there could be substantial improvements in the operation of existing boilers. Proper attention to combustion control, and a greater availability of gas testing equipment for routine monitoring of boiler conditions, should allow low cost savings to be achieved in the near term, mostly without capital investment. Operator training and improved energy management are needed. Potential for Improvements 3.303 The improvements in energy efficiency in manufacturing enterprises that could come from the adoption of more efficient equipment and equipment that is properly sized for its application (as well as properly operated and maintained) are believed to be substantial. Of course, the magnitudes of these improvements are highly variable from enterprise to enterprise and it is impossible to generalize-every case is different. As a general rule however, those responsible for the specifying and purchasing of major items of equipment need to be more aware of technical developments in equipment designs and must be diligent in seeking higher performance equipment. 3.304 Capital costs should be considered in conjunction with operating costs so that full consideration is given to more expensive but more efficient equipment. The principle of life cycle costing and the selection of equipment based on economic evaluations need to become standard practice: lowest first cost should not be the selection criterion. Above all, the customer must learn how to influence product quality and product characteristics, while manufacturers need to adopt a more service-oriented approach to survive and prosper in a market environment. 3.305 Although many beneficial changes will occur under the influence of the market, government policies and regulations can promote faster changes. For example, stricter enforcement should be ensured of regulations prohibiting the manufacture and sale of electric motors made to out-dated standards. Fiscal incentives should be considered to help enterprises justify more rapid replacement of old equipment using backward technologies. Financial support should be considered for research and development on energy efficient products, and for popularization of new and efficient products. Generic Investment Options 3.306 The energy efficiency measures selected for study in this sector-from a great many possible measures in a very complex sector-were the following: - 149 - Table 3.70: TYPICAL BOILER OPERATKNG DATA IN MAJOR CI=iE Operational Thermal Efficiency of Industrial Boilers in Guangzhou City No. Boiler type sets Measured efficiency(% Average Minimum 1 Hand-furd boiler 20 50.5 45.0 2 Reciprocating grate 101 64.7 43.3 3 FBC 11 65.8 61.5 4 Chain grate 22 69.9 65.1 5 Pulverized coal 2177.6 71.8 6 Oil fired 26 81.7 67.0 7 Others 11 62.1 58.4 Actual Measured Results of IB in Lanzhou City No. item Boiler (t/h) < 0.5 1 2 4 6 10 1 Sets measured 3 11 55 75 51 2 Local capacity (t1h) 1.2 11 113 300 32 10 3 Average output of boiler (tth) 0.39 0.73 1.21 2.37 5.06 5.81 4 Flue gas temperature *C 211 139 134 145 133 128 Max (*C) 297 211 212 210 169 128 Min(-C) 139 76 96 78 98 - 5 Excess air ratio (a) 2.97 2.73 3.28 3.48 3.36 3.37 Max 3.73 6.79 5.53 5.88 5.13 3.37 Min 2.03 1.68 1.79 2.10 1.90 - 6 Carbon content of slag (%) 20.5 27.6 18.9 23.4 25.4 18.2 Max (%) 58.7 66.5 59.6 57.6 32.1 18.2 Min (%) 2.64 2.35 2.71 3.03 16.7 - 7 Heat efficiency of boiler (%o) 63.5 67.2 68 69.7 72.2 74.5 Max (%) 69.9 76.3 75.07 81.0 78.0 74.5 Min(% 64.1 54.3 52.3 55.3 60.0 - Measured Thermal Efficiencies of Industrial Boilers in Shanghai Year Item Boiler (t1h) < 1 1 2 4 > 6 Toua 1987 Number (sets) 59 46 71 89 77 283 Mean heat off. ()60.86 67.27 68.70 70.49 65.51 - 1988 Number (sets) 39 50 63 105 17 274 Mean heat eff. ()61.31 65.80 68.93 70.71 70.19 - 1989 Number (sets) 46 47 40 66 13 212 Mean heat eff. ()62.58 68.15 68.78 71.99 74.02 - 1990 Number (sets) 32 37 32 61 7 169 Mean heat eff. (9o) 62.05 70.88 70.35 73.14 75.77 - 1991 Number (sets) 38 36 37 42 27 180 Mean heat eff. M% 77.26 68.41 72.59 72.55 73.74 - 5 years Number (sets) 214 216 243 363 81 1,117 Mean heat eff. M% 64.8 68.1 69.9 71.8 72.1 - - 150 - El High efficiency electric motors The annual output of small and medium size three phase induction motors (0.5 to 1000 kW) runs at about 3.5 GW of which 3.1 GW are under 200 kW size. Electricity consumption in all these small and medium size motors is estimated to be 60 percent of total industry electricity consumption. About 70 percent of the existing motor inventory is from the old J series (typical of the motors made in developed countries 30 years ago) and about 30 percent are Y series (typical of motors from 20 years ago). The efficiency of such motors ranges from 2 to 5 percentage points below modem standards in the USA, Europe and Japan. New designs of motors with higher efficiency are now manufactured in China (the YX series) and, in sizes above say 15 kW, these have efficiencies around 3 percentage points better than the conventional Y series used for most industrial applications. E2 Variable speed motors Fans and pumps have an installed motor capacity of 90 GW or 27 percent of the national total, consuming 165 TWh or 31 percent of national electricity consumption. It is estimated that at least 50 percent of these fans and pumps operate under conditions of variable load and throughput, mostly controlled by baffles or valves in an energy -inefficient manner. Recycling from the pump discharge side to the suction side is also common, resulting in waste of electricity. By introducing variable speed drives for fans and pumps, lower throughputs could be achieved while using less electricity: exact savings depend on the load profile of the particular application but 20-30 percent is often possible. Variable speed motors are made in China but output is limited. Many motors use an electromagnetic clutch for stepless speed variation or pole changing motors (2 speed, 3 speed, 4 speed). Variable frequency systems are generally imported and are costly (although usually more efficient). E3 Electric motor repair centers Of the total installed capacity of electric motors of about 330 GW, about 10 GW or 3 percent are repaired each year. Repairs are mainly rewinding, estimated at 80 percent of all work. There are no specialized rewinding companies in China at present, and larger motors are often sent back to the manufacturer for repair. Smaller motors are repaired by a wide variety of workshops or enterprises. Most use crude equipment for burning off the old motor windings and do not work to strict technical specifications. - There is no means of checking the efficiency of the rewound motors. An investigation of the effectiveness of repairs showed that the drop in efficiency averaged about 1 percent, with the greatest decrease-almost 2 percent-for the smallest motors. A significant improvement in rewinding practices is possible and this could have an impact on electricity consumption in all industries. - 151 - E4 Steam trap production About 300 million tons of coal are consumed annually to produce over 800,000 tons of steam per hour. Boiler efficiency is clearly important but a major factor is also the proper operation of steam distribution and condensate recovery systems in industrial plants (as indicated by figures given previously, the overall efficiency of steam systems is around 20 percent). A key element is the steam trap: Chinese- made traps are often of outdated design, poorly machined and have a short service life. It is estimated that under 10 percent of the traps needed for effective steam system operation are actually installed. The upgrading of steam trap production could therefore help all industries to save steam and thus to save boiler fuel on a large scale. 3.307 Based on data obtained from motor manufacturers and research institutes, the above measures were examined and the benefits to electric motor and steam trap users were evaluated. Other than for the establishment of motor repair centers, the rate of return for an investment in the measures listed is dependent on the specific situation of the user. In general, it is believed that most of the measures can give good payback periods for industrial enterprises but that more promotional efforts are needed to encourage greater levels of adoption. 3.308 With respect to the motor repair centers, the calculated rate of return and payback (including construction time) are as follows: IRR percent Payback, years E3 Motor repair centers 45 4 3.309 Forecasts of the potential extent of application of each measure were made for business as usual and accelerated scenarios. For El and E2, the figures given are for new motors sold (expressed as MW/year) over and above present levels. For E3, the figures are for the capacity of motors repaired annually (MW/yr). For E4, the figures are for the number of steam traps made above present levels. The forecasts are: - 152 - 1990 2000 2010 El High Efficiency Motors (MW/yr) BAU motor capacity sold 0 2,500 15,000 Accel. motor cap. sold 0 5,000 25,000 E2 Variable Speed Motors (MW/yr) 0 BAU motor capacity sold 0 1000 3,000 Accel.motor cap. sold 0 1,500 4,500 E3 Motor Repair Centers (MW/yr) BAU repair capacity 0 2500 5000 Accel.repair capacity 0 3,500 8,000 E4 Steam Traps (million items per year) BAU extra traps made 0 2 10 Accel.extra traps made 0 4 10 3.310 Details of the assumptions made and the energy and emissions factors used in the calculations are given in Appendix A. Projected Impacts on Energy and Emissions 3.311 Using the forecasts indicated, the following are the expected impacts on energy consumption in China by users of the improved equipment: Savings 103 Savings 10 TCE/yr by 2000 TCE/yr by 2010 BAU Accel. BAU Accel. El High efficiency motors 103 206 618 1,029 E2 Variable speed motors 247 370 741 1,111 E3 Motor repair centers 55 73 110 176 E4 Steam traps 2,000 4,000 10,000 10,000 3.312 Similarly, expected impacts on greenhouse gas emissions are indicated in terms of the reduced tonnages of CO2: - 153 - CO, reduction CO2 reduction 10' TPY by 2000 10' TPY by 2010 BAU Accel. BAU Accel. El High efficiency motors 65 131 392 653 E2 Var. speed motors 157 235 470 705 E3 Motor repair centers 35 49 70 111 E4 Steam traps 1,302 2,604 6,510 6,510 Emissions 3.313 For this sector-the manufacture of equipment-no emissions were reported or estimated as the sector itself is not a major user of energy and pollutant emissions are not large. The impacts on energy use and CO emissions estimated in the previous section are therefore expected to be observed as changes in other sectors throughout the economy-sectors that use electric motors or employ steam traps. - 154 - 4. COAL MINING INDUSTRY A. INDUSTRY PROFILE AND PRODUCIS 4.1 Coal is of course the most important energy source in China and the coal mining industry is therefore a key contributor to the national economy. In 1992, the total production of raw coal reached 1.11 billion tons. The coal mining industry is itself a major energy consumer for coal mine exploration, mine construction and coal production, washing, preparation and transportation. Significant energy is also consumed in subsidiary enterprises such as service trades to the mines and to the industry personnel. 4.2 Coal mining in China is conducted by both state-owned enterprises and enterprises owned by local collectives (TVEs). To improve the economic performance of many coal mining departments, their business activities have broadened in recent years. In addition to coal production, many enterprises undertake such activities as electricity generation, coking, coal gasification, coal processing, chemicals production, and utilization of minerals associated with coal mining. At present, there are 21,037 enterprises in the coal industry employing 7 million persons and operating the following facilities, singly or in combinations: Mines, state owned 1,866 Mines, local collectives 17,408 Coal washing plants about 300 Machinery plants over 190 Power stations using gangue 60 Power stations using coal 30 Building material plants using gangue and wastes about 300 Service enterprises, other businesses over 2000 4.3 Within these enterprises, there are 21 with an annual coal production capacity of over 10 million tons, 12 with over 5 million tons and 18 with over 3 million tons. Collective-owned mines generally use hand mining methods and their productivity is particularly low. Amongst larger state-owned mines, two thirds are using mechanical mining techniques and one third have fully integrated mechanical mining systems. However, it is estimated that about one third of the machinery in even the larger state- owned mines can be considered backward, using old out-of-date technology and consuming large amounts of energy. - 155 - 4.4 By 1990, the coal washing capability of key coal mines reached 223.6 million tons per year, annually disposing of wastes of about 37.4 million tons. The energy saved in coal transport is estimated to be about 13.6 million TCE per year. B. ENERGY USE 4.5 Energy consumed in the industry is mainly in the form of coal and electricity, with typically about 2 percent as petroleum-based fuels. A breakdown of energy consumption from 1980 to 1992 is shown in Table 4.1. A significant amount of the coal is used in small-scale boilers scattered around the enterprise sites. A total of 15,500 small boilers are in service, with a steam raising capacity,of about 47,000 t/h and consuming about 10 million tons of coal annually. Table 4.1: ENERGY CONSUMPTION OF MAJOR COAL MINES, 1980-92 Petroleum Total Raw coal Electricity products enemy 106 t % GWh % 10, t % 10'TCE 1980 12.60 62.95 1,170 35.47 15 1.58 13.95 1981 13.00 65.09 1,179 33.26 16 1.65 14.32 1982 13.52 65.05 1,236 33.45 15 1.50 14.93 1983 14.09 64.78 1,299 33.62 17 1.60 15.61 1984 15.77 65.47 1,423 33.00 18 1.53 17.30 1985 15.52 64.06 1,511 34.68 15 1.26 17.60 1986 15.52 61.97 1,609 36.11 19 1.56 18.00 1987 14.46 60.00 1,651 37.90 25 2.10 17.60 1988 15.03 59.20 1,732 38.60 27 2.20 18.13 1989 16.24 58.23 1,955 39.67 28 2.10 19.91 1990 18.77 58.79 2,198 38.95 35 2.26 22.80 1991 16.40 54.33 2,264 43.43 32 2.24 21.06 1992 17.92 56.50 2,324 41.48 31 2.02 22.64 Note: These data were provided by the Energy Conservation Office of the coal industry and do not include the energy consumed in coal washing plants. C. ENERGY EFFICIENCY 4.6 Energy consumptions per ton of coal output from 1980 to 1992 are shown in Table 4.2. There are of course many factors affecting the development, efficiency and energy consumption of the coal mining industry. For example, some of the more important factors are as follows: - 156 - (a) Location within China. South of the Huanghe or Yellow River, there is no energy required for space heating in the winter months, in contrast with the need for heating in the northeast and northwest of the country. As an example of the internal use of coal, the Mongolian Integrated Coal Company in the northeast produces over 110 million tons per year of coal but uses 7.5 million tons of this for its own purposes. Table 4.2: SPECIFIC ENERGY CONSUMTXONS OF MAJOR STATE-OWNED COAL MINES, 1980-92 Raw coal Coal Electricity output consumption consumption 106 t t/10, t kWh/t 1980 344.39 36,586 33.97 1981 335.05. 38,800 35.19 1982 349.90 38,640 35.32 1983 363.12 38,803 35.77 1984 394.70 39,954 36.05 1985 406.26 38,202 37.19 1986 413.92 37,495 38.87 1987 427.98 33,787 38.58 1988 435.79 34,489 39.74 1989 462.35 35,125 42.28 1990 492.54 38,109 44.63 1991 505.00 32,475 44.83 1992 476.00 37,647 48.82 (b) The Hydrogeological Conditions. Mines exploiting thin coal seams at great depths, needing to pump water out regularly, and with large quantities of associated gas necessitating high ventilation rates, will clearly consume relatively high amounts of energy. (c) Period of Mine Exploitation. At the beginning of the working life of a mine, before full production is reached, or at the end of the working life as the coal seams are worked out, energy consumption per ton of useful product will be high. (d) Status of Mining Equipment. In the older mines, the equipment used for mining and for associated services will generally use inefficient technology and be wasteful of energy, compared with new mines using up-to-date mechanized mining methods. - 157 - (e) Energy Management. Mining enterprises can vary greatly in their levels of professional management, of measuring equipment and of modern instrumentation for monitoring performance. In general, the use of energy in the Chinese coal mining industry can be considered somewhat inefficient and below the average levels of efficiency found in most large-scale enterprises in the country. D. ENERGY EFFICIENCY MEASURES 4.7 From 1981 to 1990, a total investment of Y 1.62 billion was made in key coal mines for energy saving measures and energy efficient technologies. This investment brought energy savings of almost 8 million TCE, representing an investment of Y 203 per TCE. The measures applied to save energy included the following: (a) Electric Motor Applications Typical measures are replacing ventilation fan blades with more efficient designs, applying modified designs of drainage pumps, and adjusting electric motor speeds by electronic devices and hydraulic coupling systems.These and similar measures have resulted in the renewal of over 30,000 high energy consuming mechanical and electrical items, saving up to 0.5 billion kWh per year. (b) Coal Mine Gases There are 43 gas utilization systems in operation and 355,500 families using the gas: the annual methane consumption is 0.36 million m and the annual savings equivalent to 600,000 TCE. (c) Coal Briquetting About 160 coal briquetting plants have been established with an annual output of 1.2 million tons. The energy savings are estimated to be 550,000 TCE per year, due to the reuse of coal fines and the more efficient use of the briquettes. (d) District Heating District heating systems have been expanded, covering an area of 8 million m2 and saving 550,000 TCE/yr. (e) Cogeneration A major power plant at Kailuan coal mine has converted to cogeneration operation from the conventional condensing mode, producing electricity and - 158 - heat for various uses including district heating in the Linxi area. The heat supply has allowed 38 small boilers to be replaced: since 1982, the accumulated coal savings have reached 415,000 tons of coal and electricity savings 10.1 million kWh. (f) Use of Coal Wastes Coal waste-fired power plants now amount to 57 plants with a total installed capacity of 533 MW. 4.8 In spite of these successes, there are currently shortages of funds for investment in energy saving and some regions in particular are seeing very little investment. There are no laws or regulations for energy saving and energy efficiency does not feature in coal mine designs. Even new coal mines include obsolescent, high energy consuming equipment. E. POTENTIAL FOR IMPROVEMENT 4.9 Measures already adopted in the industry, as indicated above, will continue to be made. Old and outdated technologies will be replaced by modem energy efficient technologies and equipment. For example, ventilation fans generally account for 15-30 percent of total electricity consumption in coal production, and sometimes as much as 40 percent. Statistics for ventilation fans in 1990 show that there are large numbers of fans installed -50,775 units in coal mines owned by county or higher level governments and 2864 main ventilator fans in key coal mines. Under 5 percent of these fans reach advanced national or international standards, indicating a major opportunity for energy saving by replacing outdated equipment. In conjunction with improved fan equipment, further application of variable speed drives can be expected to better match fan output with system requirements, and thus to save energy. 4.10 Another example for the application of modem equipment is water pumps, whose motors use about 10-30 percent of total electricity consumption in coal production, rising to 80 percent in extreme cases. Key coal mines use 27 percent of total electricity or 2.5 billion kWh annually, representing about 5 kWh per ton of coal produced. Coal mines owned by county and higher level governments have installed 85,519 pumps, dominated by units made in the 1950s and 1960s. Drainage systems typically run at efficiencies of 30-40 percent, offering another. opportunity for large electricity savings through updating of equipment. 4.11 Use of coal wastes will be increased, as there are over 50 million tpy of washed coal wastes and 5.5 million tpy of coal muds available for exploitation. This quantity of wastes-with some additional low to middle quality coals-could be applied to electricity generation in cogeneration stations with installed capacities totalling about 3,000 MW. The coal savings could be in excess of 10 million tpy. - 159 - 4.12 Extension of coal washing capacity is also expected. Doubling capacity to say 450 million tpy by 2000 would result in 75 million tpy coal wastes being removed and transportation energy equivalent to about 27 million TCE per year being saved. Better classification of coal into narrower size ranges is likely to be used increasingly to provide a better quality product for customers and to help them utilize the coal more efficiently. 4.13 Modem mining technologies and procedures will be applied, including more strip mining of surface or shallow coal seems. Strip mining is estimated to save 30 percent over conventional deep mining. F. THE ENVmONMENTAL SiTUATION 4.14 All coal mining areas in China have been severely polluted, showing the detrimental effects of water and air pollution and of solid waste in various forms. The effect of air pollution in particular is seen in the higher incidence of respiratory problems in the local population, and higher cancer rates are being observed. 4.15 Water pollution is-seen in the destruction of underground water formations and their contamination by dirty surface drainage. This dirty water can come from many sources, such as pit drainage water, effluent from coal washing plants, and water from coking plants (e.g., water used to quench coke), with the latter particularly prone to contamination by toxic chemicals released in the coke-making process. 4.16 Air pollution is caused by the combustion of coal in boilers, heating stoves for living areas, power plants, coking plants, coal gasification plants, and associated operations such as brick ovens, cement mills and machinery maintenance facilities. The efficiency of coal mine enterprise boilers is typically 50-60 percent, as much of the equipment is very old. Table 4.3 shows the trends in major air pollutant emissions for the largest state-owned coal mines. 4.17 In addition to the emissions quoted, the self-combustion of gangue residues produces a large amount of pollution by SO2 and CO2. Another source of air pollution is the release of coal mine gas: each year, about 500 million m' of gas are pumped out of pits but only 290 million m3 are used, the remainder being discharged to atmosphere. Typically, this gas has a high methane content. 4.18 Solid wastes are mainly derived from dusts and residues obtained from coal screening, washing, gasification, coking, cement processing, power plants and transportation. It is estimated that about 0.3 million tons of dust are emitted into the air by major state-owned coal mines each year, 4.7 million tons of ash discharged from boilerhouses, and 5 million tons of gangue from coal washing plants. By 1992, the accumulation of gangue in coal mines had reached about 200 million tons. - 160 - Table 4.3: ESTIMATED DISCHARGES OF SO2 AND CO2 FROM MAJOR COAL MINES, 1980-92 S02 CO 106 t 106 t 1980 0.252 5.54 1981 0.260 5.72 1982 0.270 5.95 1983 0.282 6.20 1984 0.315 6.94 1985 0.310 6.83 1986 0.310 6.83 1987 0.289 6.36 1988 0.300 6.61 1989 0.324 7.15 1990 0.375 8.26 1991 0.328 7.22 1992 0.360 7.92 Average 0.310 6.73 - 161 - 5. POWER SECTOR A. SECTOR PROFILE 5.1 The Chinese power generation sector is based predominantly on coal, this resource representing about 90 percent of the energy used in power stations. The total installed generating capacity has now exceeded 166,000 MW, included in which is a contribution of hydroelectric power of over 40,000 MW. The total electricity generated is in excess of 750 TWh and this has been growing at about 8 percent annually for the last 10 years. Recent figures for generating capacity and power generated are as follows: Installed generating Power generated capacity MW 10' kWh per year Of which of which: Total Hydro. Total Hydro. 1980 65,270 20,230 300.6 58.2 1985 87,050 26,420 410.7 92.4 1986 93,819 27,542 449.6 94.5 1987 102,897 30,193 497.2 100.3 1988 115,497 32,698 545.1 109.2 1990 137,890 36,046 621.3 126.4 1991 151,473 37,884 677.6 125.1 1992 166,532 40,680 754.2 131.5 5.2 Although there remain shortages of electricity in many parts of the country, the growth in generating capacity is now keeping up with the growth of national income and with the overall increase in energy consumption: - 162 - National Energy Energy Electricity income production consumption consumption growth % increase % increase % growth % 1985 13.5 9.9 8.2 9.0 1986 7.7 3.0 5.4 9.5 1987 10.2 3.6 7.2 10.6 1988 11.3 5.0 7.4 9.7 1989 3.7 6.0 4.2 7.3 1990 4.8 2.3 1.8 6.2 Some imbalances in the situations in various parts of China are shown in the following figures for 1990: Region Energy Electricity GNP production consumption Y 10, % 106 TCE % TWh % East 923.4 53.3 256.6 25.6 310.5 49.8 Central 512.8 28.9 558.5 53.7 202.4 32.5 West 281.0 15.8 196.4 18.9 109.3 17.5 The distribution of power plant units by size at the end of 1990 was as follows: -163- Size, size range % < 50 MW, low pressure units 22.6 < 50 MW, high pressure units 9.8 Cogeneration systems 9.1 100 - 110 MW 11.5 125 MW 8.6 200 - 210 MW 23.0 250 - 350 MW 14.2 500 - 600 MW 1.2 By the end of 1992, there were 26 power plants, including both thermal and hydro plants, with total capacity over 1,000 MW. These plants are: Name MW Name MW Hydroelectric: Gezhouba 2,715 Longyangxia 1,280 Baishan 1,400 Liujiaxia 1,225 Thermal: Jianbi 1,625 Shidongkou 1,200 Douhe 1,550 Shidongkou #2 1,200 Qinghe 1,300 Dagang 12,00 Shengtou 1,300 Huangpu 1,100 Xuzhou 1,300 Wangting 1,100 Pingyu 1,200 Xingtai 1,090 Datong 1,200 Qinling 1,050 Jinzhou 1,200 Liaoning 1,050 Fulaeji #2 1,200 Zhenhai 1,050 Zouxian 1,200 Zhangze 1,040 Yaomeng 1,200 Jiaozuo 1,024 -164- 5.3 With respect to power grids, there are thirteen large grids with capacities in excess of 1 GW. There are over 480,000 kilometers of power transmission lines operating at over 35kV: Voltage Length, km Over 35 kV 480,000 Among which: 500 kV 8,000 330 kV 4,000 220 kV 77,000 110 kV 120,000 5.4 Data on grid capacities and power generated for 1991 are as follows: Grid Connected capacities Power generated Hydro Thermal Total Hydro Thermal J[ta GW % GW % GW TWh % TWh % TWh E. China 2.5 11 21.3 89 23.8 6.8 6 112.0 94 118.8 NE China 3.9 17 19.1 83 23.0 11.1 11 91.9 89 103.0 Cen. China 8.2 37 13.8 63 22.0 34.7 34 67.2 66 102.0 N China 0.9 5 18.0 95 18.8 1.4 1 95.8 99 97.2 W China 4.4 47 5.0 53 9.4 15.7 34 30.1 66 45.8 Shandong 0.1 1 9.0 99 9.1 0.1 <1 49.3 >99 49.4 Guangdong 2.2 24 6.8 76 8.9 4.8 13 33.1 87 37.9 Sichuan 2.3 32 4.8 68 7.0 10.3 32 21.6 68 31.9 Fujian 1.6 49 1.6 51 3.2 4.7 35 8.9 65 13.6 Yunnan 1.7 57 1.3 43 2.9 7.1 61 4.5 39 11.7 Guangxi 1.4 52 1.3 48 2.8 5.4 44 6.8 56 12.1 Guizhou 0.9 42 1.3 58 2.2 3.3 32 7.0 68 10.3 W in Mongolia 0 0 1.6 100 1.6 0 0 8.7 100 8.7 5.5 Further statistics for the power sector are given in Table 5.1. These data confirm that hydroelectricity is now around 18 percent of power generated and 25 percent of installed generating capacity. B. ENERGY USE 5.6 The fuels used for electricity generation are shown below, with the predominant role of coal clearly shown: - 165- Power Total generated fuel Coal Oil Gas Eic1 10' kWh 10 TCE 10' t % 10' t % 10' m' % 1985 318.5 123.5 156.6 84.5 13.5 15.1 3.6 30.9 1986 355.0 137.5 192.5 86.1 13.5 13.5 5.5 30.9 1987 397.3 153.8 196.2 87.1 13.4 12.3 5.7 28.4 1988 436.1 168.0 223.9 87.8 14.3 11.8 4.2 28.4 1989 466.4 180.1 274.3 89.5 17.1 10.2 9.2 28.4 1990 494.5 189.4 291.0 90.3 15.5 8.8 9.7 28.8 1991 552.8 209.8 325.9 91.4 15.0 7.7 10.6 28.7 Note: Data for units over 6 MW only. Gas includes natural gas, coke oven gas, etc. 5.7 In the near future, the contribution of nuclear power will amount to 1200 MW-two 600 MW units at the Qingshan nuclear plant, the first of which began operating in 1993. C. ENERGY EmCIENCY 5.8 The average coal consumption of thermal power generation for the country was 427 gCE/kWh in 1991 and 420 in 1992. The efficiency of different types and sizes of equipment can vary widely. For example, data for large units in 1990 are as follows: Coal consumption (gCE/kWhL Size MW Design Best Average Worst 100 388-390 390 418 460 125 355-358 364 392 474 200 345-360 373 394 491 300 338-344 357 362 390 600 320 - 358 - D. ENERGY EFFICIENCY TRENDS 5.9 The gradual and steady reduction in coal consumption for electricity generation is shown in Table 5.1. - 166 - Table 5.1: POWER SECTOR INDICATORS SINCE 1985 1985 1986 1987' 1988 1989 1990 1991 1992 Capacity, GW 87.1 93.8 102.9 115.5 126.6 137.9 151.5 166.5 inc hydro, GW 26.4 27.5 30.2 32.7 34.6 36.1 37.9 40.7 Generation TWh 410.7 449.6 497.3 545.1 584.7 621.3 677.6 754.2 inc hydro Twh 92.4 94.5 100.2 109.2 118.4 126.4 125.1 131.5 Coal rate (net) gCE/kWh 431 432 432 431 432 427 424 420 Coal rate (gross) gCE/kWh 398 398 397 397 397 392 390 386 Plant internal use average % 6.42 6.54 6.67 6.69 6.81 6.90 6.94 7.00 hydro 0.28 0.28 0.31 0.34 0.30 0.30 0.32 0.37 thermal 7.78 7.83 7.87 7.94 8.12 8.22 8.13 8.08 Line losses % 8.18 8.15 8.48 8.18 8.18 8.06 8.15 8.23 Utilization hours average 5,308 5,388 5,392 5,313 5,171 5,036 5,020 5,029 hydro 3,853 3,982 3,771 3,710 3,691 3,800 3,675 3,567 thermal 5,893 5,974 6,011 5,907 5,716 5,413 5,451 5,462 Per capita generation kWh/person 246 - - 495 519 543 585 Electricity as % of energy demand 18.4 22.1 22.9 23.3 24.0 25.0 26.0 5.10 Some typical measures adopted in recent years to improve power plant efficiency are illustrated in Table 5.2. This lists 11 items and the costs and associated benefits. In most cases, the payback periods are under two years. E. POTENTIAL FOR IMPROVEMENT Generating Plant Mix 5.11 There are three main areas for reducing the coal consumption in the power sector-achieving a better mix of generating plants through increased exploitation Table 5.2: ENERGY CONSERVATION MEASURES Investment Coal Energy for unit No Projects eu a lec- Technical innova- saving energy Return alent coal triciy Oil No tion projects value saving period (Y loom) (10 KR) (10 Ki) (100 GWh) (10 K) (Y 100m) (TCE) I Cogeneration (supply) 70 950 1,330 1 Cogeneration (supply) 14.25 737 4.91 2 New Type o Burner for 1.35 139 174 10.8 2 New Type of Burner for 2.9 97 0.47 Coal Powder Boiler Coal Powder Boiler 3 Boiler Sealing for Heat 2.4 85 119 - - 3 Boiler Sealing for Heat 1.28 282 1.88 Protection Protection Water Pump- er Speed Adjusting 4 Water Pumper Speed 10 120 - 30 - 4 Water Pumper Speed 7.5 833 1.33 Adjusting Adjusting 5 Comprehensive Inno- 15 220 308 - 5 Comprehensive inno- 3.3 682 4.55 vahion for Uait of 0.2 vation for Unit of 0.2 MkW MkW 6 Washing Steam Conden- 0.5 160 224 - - 6 Washing Steam Con- 2.4 31 0.21 ser by Rubble Ball denser by Rubble Ball 7 Motor Innovation of 0.08 15.2 * 3.3 - 7 Motor Innovation of 0.95 52.6 0.084 Magnetic Slot Magnetic Slot 8 Surplus Heat Recycling 8.2 403 465 17.79 - 8 Surplus Heat Recycling 9.46 230 0.87 of Pipe Heat Exchanging of Pipe Heat Exchang- ing 9 Microcomputer Online 4 350 490 - - 9 Microcomputer Online 5.25 114 0.76 Analysis for Energy Loss Analysis for Energy 10 Improving for Nonpower 12 30 - 20 - 10 Improving for Non- 5 1,500 2.4 Compensation power Compensation II Innovation on Electricity 22.8 348 - 87 - II Innovation on Electric- 21.75 625 1.05 Distribution of Urban ty Distribution of Ur- Area ban Area Toals 146-33 2 o70.2 3.950 18 10. 74-04 782 1.94 Note: (I) Thermal supply is not Included in thermal power cogeneration. (2) Energy prices apply the shadow price: Y 150rCE, Y 0.25 /kWh, Y 930A. Investments are calculated with fixed prices. (3) The investments and energy saving are forecasted based on the average results of the conplete projects. - 168 - of hydroelectric resources and cogeneration systems, reduced losses in transmission and distribution, and improved efficiency of power plants. 5.12 The potential for further exploitation of hydroelectricity resources is substantial. It is estimated that 380,000 MW could be utilized, while the present installed capacity is only about 40,700 MW (10.7 percent of exploitable resources). Most of the hydroelectric resources are found in the west of the country, such as the upper and middle reaches of the Yellow River, the upper reaches of the Yangtze River, the Hongshuihe and Lanchangjian Rivers. These would all represent large hydroelectric projects, in addition to which there are opportunities for developing small and medium size hydroelectric plants on smaller rivers in the western regions. 5.13 With respect to thermal units, the large proportion of small and low/medium pressure steam plants-about 30 percent-will be reduced as the older and least efficient ones are shut down and as new large units are brought on line. Cogeneration systems, accounting for 9 percent in 1990, will increase in importance: it is expected that 10,000 MW will be added by 2000, resulting in the contribution of cogeneration rising to 12 percent. Both these actions will lead to an improvement in the efficiency of electricity generation and a reduction in the coal consumption rate of say 60 gCE/kWh (to about 370 gCE/kWh). Reduction of Line Losses 5.14 Efforts can be made to decrease the losses now being incurred in transmitting and distributing electricity. Line losses are about 8.2 percent currently for long distance transmission, excluding local distribution networks. In 1989, a study of five major regions in the north and northeast of China gave the following results: Main grids > 220 kV 2-4% loss Local urban grids < 110 kV 3-6% Rural grids < 110 kV 7-9% Rural grids, low voltage 12-20% Industrial user networks 3-8% 5.15 The main sources of losses are: (a) High loads are put onto old distribution systems. (b) Expanded power generation facilities have not been accompanied by increased distribution systems. (c) Power factor compensation is often inadequate, leading to high line losses. - 169 - (d) Networks have little or no spare capacity and thus distribution management is inflexible; transmission distances are often long but there are no alternative routings. (e) Recent changes in electricity demand patterns-such as increased urban electricity consumption-have not been mirrored by increased distribution capacity. To reduce losses, old and overloaded systems are being replaced, although this is a slow and costly undertaking. Replacement takes into account both increased loads and safety considerations. Reduction of the line losses by 1 percent is estimated to be equivalent to saving 6 billion kWh or 2.2 million TCE per year. Electricity Generation 5.16 Finally, improving the efficiency of electricity generation is being carried out. In 1991, the generation of electricity consumed 326 million tons of coal or 22.4 percent of national primary. energy demand: it is expected that this could rise to one third of total coal production by 2000. Improving generating efficiency could therefore make a major contribution both to reducing greenhouse gas emissions and to alleviating coal supply and transportation problems. 5.17 The present levels of coal consumption are significantly higher than in developed countries: gCE per kWh 1980 1985 1987 1990 1991 China 448 431 432 427 424 USA 378 377 351 - - UK 383 358 358 - - Former Soviet Union 328 327 325 - Japan 338 327 325 - - Germany 340 327 321 - - 5.18 From the present level of 427 gCE/kWh, it is expected that consumption can be reduced by about 60 gCE/kWh to 360 gCE/kWh by 2000 by measures such as the following: (a) Ensure new generating capacity is efficient. In the next ten years or so, 100,000 MW of new capacity will need to be added to the Chinese power system. Units with capacities over 125 MW are expected to reach over 80 percent by 2000. For new coal fired condensing units of 300 MW and above, energy consumption should be under 330 gCE/kWh. For - 170 - cogeneration plants, this should be 270-280 gCE/kWh. Efforts will be made to limit the construction of new medium and small size steam condensing power plants. The contribution of new units is equivalent to a reduction in energy use of about 24 gCE/kWh by 2000. (b) Rehabilitation of old plants. Existing low and medium pressure steam turbine generating plant often have high coal consumptions. The average is about 600 gCE/kWh and some operate at 1 kgCE/kWh. These inefficient units are rebuilt to modem specifications or shut down. It is important that old equipment is not sold to other plants where it can be recommissioned later. By 1995, about 1600 MW of these units will remain in operation in remote regions of China but about 5500 MW will be replaced or reconstructed, reducing the national coal rate by over 6 gCE/kWh. By 2000, a further 10,500 MW will be reconstructed and 2,500 MW shut down, and new capacity will be provided by large high efficiency plants, reducing coal use by about 15 gCE/kWh. (c) Improved operation of existing large plants. The design energy consumptions for new plants are often 10 percent or more higher than developed countries. In many cases, design efficiencies are not reached for a variety of reasons, such as: (i) Boiler feedwater temperatures 30*C or more below design. (ii) Vacuum levels in condensing equipment are not adequate. (iii) Stack gas exhaust temperatures are high. (iv) Excess combustion air is much higher than design rates. (v) Plants serving the peak loads are not able to meet demand and other units are brought on line for short periods. These plants are run at low loads and low efficiency at other times. (vi) Poor maintenance leads to lower reliability and forced outages: unplanned breakdowns cause high coal consumption through excessive start ups and shutdowns. Through technical renovation, it is expected that coal consumption will be reduced by- 2000 by about 15-20 gCE/kWh and a further 5-10 gCE/kWh by 2010. Typical consumptions for different units are thus expected to be approximately as follows: - 171 - Size, MW 1995 2000 2010 500-600 335-350 325 320 250-350 345-350 325 320 200-210 375-385 365 355 125 370-400 390 380 100-110 410-415 390 380 50 and below HP steam 430-440 420-430 - LP/MP steam 580-610 560-590 (d) - Increased adoption of cogeneration. By the year 2000, 7,000 MW of cogeneration capacity are planned. These are much more efficient suppliers of both heat and electricity, giving an equivalent coal consumption rate of say 280 gCE/kWh on the basis of sharing the energy input between the two products. (e) Reduced in-plant use of electricity. The consumption of electricity within the generating plant itself is generally about 8 percent of the generated power. Some typical data are: Size Own use of electricity % High Average Low 125 MW 10.2 8.0 5.9 200 MW 10.8 8.2 5.1 300 MW 6.8 5.3 4.3 In the smallest plants, values of 12 percent are not unknown. High consumption can be due to operating inefficient machinery such as water pumps, fans and conveyors, some of which are poorly sized or are based on old and outdated technology. There is little use of variable speed motors on combustion air fans, for example, so that these are operated at full rate all the time, regardless of the actual need for air. Air rates may be adjusted in some cases by using dampers on the fan suction, reducing the air flow and improving combustion conditions, but still maintaining the high electrical load. 5.19 Other auxiliary machines such as coal grinding equipment are simply high energy consumers compared with the type of equipment operated in developed - 172 - countries. Replacement of outdated auxiliary machines by modem equipment will therefore contribute to improving the efficiency of the power plants themselves. Efforts are being made, especially in the larger plants, to adopt better designs, with experience showing that payback periods are usually well below two years. F. PROJECTED Ourrors 5.20 According to existing plans, the forecast electricity output in 2000 is 1,350 billion kWh. This may be broken down as follows: 2000 2010 Source 10I kWh % 109 kWh % Nuclear 19.8 1.5 35.2 1.8 Thermal 994.4 73.6 1,460.4 73.0 Hydro 334.9 24.8 500.0 25.0 Renewables 0.9 0.1 4.4 0.2 Total 1,350.0 100.0 2Q000.0 10M& - 173 - 6. AGRICULTURE A. SECTOR PROFILE 6.1 The agricultural sector includes farming, fishing, animal husbandry, forestry (not including lumber industry), and water management. Although its share in GNP has been continuously declining, agriculture is still the second largest economic sector in China. Agriculture's share of GNP was 24 percent in 1990, compared with its 30 percent share in 1980. 6.2 China is the largest grain, cotton, and meat producer. Outputs of other major agricultural products such as peanut and soybean are also high. There was 95.65 million hectare (ha) cultivated land as of 1991, including 47.82 million ha irrigated land. Tractors plough about 52 percent of the cultivated land and diesel and electric pumps are applied to about 58 percent of the irrigated land. The land area that is under fully mechanized farming is small, probably around 10 percent of the total cultivated land. Most farming work in China is still done by human and animal power. 6.3 As of 1990, the total power of agricultural machinery was 287 GW, up from 150 GW in 1980. Tractors accounted for the largest share, with a total power of 90 GW. Small tractors (with an average unit power of 8.9 kW, or about 10 horsepower) provided 69 percent of the total tractor power. Irrigation pumps are the second largest group, with a total power of 71 GW, of which 53 percent was electric. Trucks used in agriculture had a total power of 46 GW (with average unit power of about 75.6 kW, or about 85 hp), motorized boats (including fishing boats) had total power of 7 GW, and the remaining 73 GW was unspecified. Table 6.1 details the stock of major energy-using equipment in the agricultural sector. B. ENERGY USE 6.4 Due to the fact that China's agriculture continues to be very labor intensive, direct energy use in agricultural production remains small, accounting for about 5 percent of total commercial energy use in China. Energy consumption in agriculture was 48.5 MTCE in 1990, including 20.7 Mt coal, 8.8 Mt diesel, 1.5 Mt gasoline, and 42.7 TWh electricity. It is uncommon that China's agriculture consumes a large amount of coal which is supposedly used for drying products and cooking animal feed. Some accounting procedures which may have included coal consumption of small village enterprises probably helped inflating the real agricultural coal use figure. 6.5 About one third of the country's total diesel supply is distributed to the rural areas. While much of this fuel is used for farming activities like ploughing and irrigation, - 174 - Table 6.1: STOCK OF AGRICULTURAL MACHINERY, 1980-90 (GW) Motor- Large & Small & Boat Rice ized Motor- Balance/ medium walking tractors trans Drainage and irrigation motors fishirng driven other Year tractors tractors /a planters Diesel Electric Other Subtotal Trucks boats sprayers & Total 1980 (c) 24.02 16.38 0.58 0.21 27.57 20.35 7.74 55.66 9.09 2.62 0.54 40.40 14930 1981 (c) 25.59 17.85 0.62 0.16 27.12 20.81 7.99 55.92 11.75 2.97 0.9 43.52 158.97 1982 (c) 26.49 20.16 0.55 0.12 26.92 29.75 0.52 57.19 14.08 3.27 0.62 45.97 168.45 1983 (c) 27.46 24.25 0.48 0.07 27.41 30.66 0.46 58.53 19.11 3.31 0.67 48.85 182.73 1984 (c) 27.57 29.27 0.39 0.05 26.54 31.59 0.44 58.57 24.97 3.40 0.64 52.85 197.68 1985 (c) 27.82 34.14 0.32 0.03 26.03 31.95 0.36 5835 31.18 3.72 0.7 55.90 212.03 1986 28.07 40.03 0.30 0.03 26.90 32.91 0.63 60.44 35.81 4.24 0.53 60.05 229.50 1987 28.76 47.13 0.28 0.04 28.18 33.97 0.43 62.58 39.66 4.86 0.53 64.53 248.36 1988 28.96 53.19 0.29 0.04 29.98 35.17 0.53 65.68 43.25 5.45 0.60 68.29 265.75 1989 28.14 58.48 0.25 0.04 32.07 36.07 0.39 68.53 4634 6.09 0.61 72.19 280.67 1990 27.46 62.31 0.26 0.05 33.49 37.49 0.32 71.29 46.21 6.96 0.75 71.79 287.08 c Values in these rows (except for irrigation motor subtotals, boats, and totals, which are given in watts in the Energy Statistical Yearbook) were calculated using a factor of I kW - 1.341 hp, derived from figures for the same year given in horsepower in the Statistical Yearbook of China and figures given in watts in the Energy Statistical Yearbook of China, 1989. *Other' includes pumps, sprinkler machines, combine harvesters, motor-driven harvesters, motor-driven threshers, eed selecting machines, grain drying machines, rice and wheat mills, cotton-ginningmills, oil presses, fodder grinders and forage grass harvesters. This column also indicates discrepancies in reported values for categories and totals. Le 'Boat tractors' are used in rice cultivation. Source: Qina Energy Statistical Yearbook, 1989; Stadsical Yearbook of Oina, various years. a significant amount is also used by tractors providing transport. Transportation is an important function of tractors in rural China, and this fuel use is accounted for in the agricultural sector. 6.6 It was estimated that about 25 percent of agricultural diesel use was used for irrigation in the mid 1980s and about 40 percent of agricultural electricity was used for irrigation. Figures for today may not have changed significantly. 6.7 While total agricultural machinery power grew at an average annual rate of 7 percent from 1980 to 1990. Diesel and electricity uses in this sector grew more slowly at less than 2 percent and 5 percent per annum, respectively. Diesel use changed little throughout most of this period. This may be attributed in part to increased energy efficiency, but it is more likely due to machinery left idle because of chronic fuel shortages. 6.8 Because of the low level of mechanization, energy input per unit agricultural output is lower in China than in industrialized countries. For example, the diesel/land ratio for grain production was 41 liter/ha for China and 51 liter/ha in the US in the mid- 1980s. The electricity/land ratio for grain production was 126 kWh/ha in China and 236 kWh/ha in the US. The gain of production efficiency from mechanization is great. The labor productivity of American grain production is more than 100 times higher than that of China. - 175 - Table 6.2: AGRICULTURAL ENERGY USE, 1980-90 Coal Diesel Gasoline Electricity Total (Mt (Mt (Mt (TW) 1980 15.50 7.49 0.53 27.00 34.71 1981 15.69 7.05 0.58 28.16 34.59 1982 17.14 6.54 0.61 28.64 35.02 1983 18.35 6.65 0.72 28.64 36.08 1984 20.18 7.05 0.89 28.84 38.44 1985 22.08 6.29 1.22 31.74 40.45 1980 22.74 6.71 1.42 32.19 42.38 1987 22.7 17.30 1.46 35.96 44.72 1988 23.55 7.67 1.54 37.89 47.09 1989 21.59 8.26 1.34 41.05 47.42 1990 20.74 8.82 1.46 42.68 48.52 Note: Total energy use in the table includes a small amount (less than 2%) other energy sources such as coke and kerosene. Source: China Energy Statistical Yearbook, 1989 and 1991. 6.9 While China's agriculture presently requires less direct energy inputs compared to its Western counterparts, its demand for chemical fertilizers is comparable. Chemical fertilizer use has more than doubled, while grain production has increased little since the late 1970s. High demand for fertilizer will require more energy inputs in the chemical industrial sector. Another related issue is the burning of crop residues for cooking and space heating in the rural area. Additional fertilizer input will be needed to replace nitrogen that would probably have otherwise returned to the soil. 6.10 As more and more farmers leave the fields, switching to nonagricultural occupations and often migrating to cities, energy-using equipment will be substituted for labor and the energy intensity of agriculture will increase. Increasing use of chemical fertilizers and pesticides has relieved Chinese farmers from the intensive labor requirements of organic farming, but has increased the indirect energy intensity of farming. C. ENERGY EFICIENCY 6.11 Despite recent improvements, energy inefficiency in agricultural machinery is still widespread. Two cases are examined here. 6.12 Irrigation. In practice, the efficiency of irrigation pumps is 20 percent below their designed performance and 30 percent below the efficiency of their modem - 176 - foreign counterparts. Four contributing factors have been identified: (a) blind drilling, without careful consideration of site groundwater reserves, has contributed to a 50 percent decrease of average irrigated area per unit pump power nationwide since the 1970s (depletion of ground water may also have contributed to this problem); (b) poor ditch and canal quality allows for seepage and decreases water delivered per unit energy input into irrigation; (c) pumps are often operated at partial load because of poor matching of pump lift with required lift, which impairs efficiency. For example, 60 percent of the irrigation pumps used in Jilin province were mainly used for water lifting below their designed lift heights; and (d) like much of other Chinese-made machinery, pump design and manufacturing technologies are backward compared to international standards. Obsolete pumps are still widely used. 6.13 Tractors. There two main groups of tractors presently operating in China. The fist group consists of models of 1950s Soviet design. Their fuel intensity is 10-20 grams of diesel per horsepower-hour (g/hp-hr) higher than that of their modern counterparts. The second group consists of domestic designed models based on 1960s technologies. Their fuel consumption is 5-10 g/hp-hr higher than that of their modern counterparts. In 1984, the average tractor fuel intensity was 195 g/hp-hr which was about 10 percent higher than that in industrialized countries. Poor maintenance also contributes to further worsening of tractor fuel economy. D. POTENTIAL FOR IMPROVEMENT 6.14 Energy management is commonly weak in agricultural production because of the lack of skills and commitment. Energy shortages in agriculture may not cause as much attention as in the industrial sector because ample manpower can always be used as the substitution. Since current agricultural production does not require much energy input the lure of energy savings is small. The government's attention in the rural area is also preoccupied by rural household energy use which is certainly a more serious issue to contend with. In addition, agricultural energy demand has significant seasonal variation. Ad hoc supply measures are adopted and are often effective for relieving the fuel and power shortage problems. Nonetheless, energy efficiency improvement deserves consideration in the nationwide energy conservation plan since agricultural electricity and diesel uses are by no means small quantities. 6.15 The improvement of agricultural energy use efficiency largely depends on the improvement of efficiency of energy-using equipment and in the ways they are operated. The former factor need to be addressed through proper production policies for the agricultural machinery manufacturing industry. Introducing modern technologies represent about 10 percent increase in tractor fuel economy and similar scale improvement of pump efficiency. Training of machine operators and routine maintenance help to prevent wasting energy in actual operation. A case study indicates that by investing in maintenance, significant amount of tractor diesel use can be saved. The cost for such kind of investment (mostly spent on purchasing equipment) is about Y 32/TCE, a very cost- effective figure. - 177 - E. ENERGY USE AND EFFICIENCY TRENDS 6.16 The mechanization of farm work, the expansion of ocean fishery, and the industrialization of animal husbandry all demand for more energy. Rural electrification is likely to cause the switch from diesel-driven pumps to electric pumps in most irrigation activities. The increasing availability of gasoline or diesel-driven light trucks may eventually put an end to the use of tractors for rural transportation. The increased mechanization of farm work will increase diesel demand. Deeper and faster processing of farm products will increase electricity as well as diesel demand. Increasing activity in ocean fishery also increases diesel demand. It is unlikely that coal consumption will increase significantly because its applications in agriculture are very limited. 6.17 The trend of physical energy intensity (energy use per ton of product) in the agricultural sector is very much decided by the extent of energy efficiency improvement and productivity growth because intensified machine use and irrigation tend to increase overall energy consumption. It is often true that the value-added energy intensity will decrease because of escalating production costs and the appreciation of farm land and other factors. 6.18 Agriculture is not an important direct energy user and it will never be one from the experience in the US. Share of agricultural energy use in total energy consumption is expected to become even smaller than current 5 percent. The absolute energy consumption of agriculture, however, will grow until reaching saturation. - 178 - 7. TRANSPORTATION SECTOR 7.1 The transport sector has been divided into three parts for the purposes of the Greenhouse Gas Study-rail, road and water transport. Transport by air has not been .included. Water and rail transport are particularly important for freight movements, representing 49.5 and 46.1 percent respectively of the national traffic in 1990, compared with 1.7 percent for road and 2.7 percent for all other freight traffic. A. RAIL Subsector Characteristics 7.2 The first rail line was built in 1,876 and the system expanded slowly to about 21,000 km of line by 1949. However, the standard of the lines and equipment remained low and only about half these lines were operable. In recent times, priority has been given to upgrading and expanding the rail network, so that the total length reached 57,802 km by the end of 1990, excluding special purpose lines: Track under central government authority 53378 km of which: Double track 13,024 Electrified 6,941 Track under local governments 4,424 Total track length 7.3 With the exception of the Tibet Autonomous Region, every province, municipality and autonomous region has been linked by rail. In 1990, the rail system was responsible for 53.5 percent of national passenger traffic and 71.3 percent of freight movement. 7.4 The rail subsector is divided into three functional activities under the Ministry of Railways: transportation, industry and engineering. These are supported by scientific and technological educational institutions. The Ministry is thus responsible for organizing and managing rail transportation throughout China, for operating factories to make locomotives, rolling stock and associated equipment and materials, and for design and construction of railway lines and related facilities. - 179 - 7.5 With respect to transportation, there are 12 bureaux to operate different parts of the system. The industrial activities are undertaken by the General Locomotive and Rolling Stock Corporation, the General Communication and Signal Corporation, and the General Goods and Material Supply Corporation, under the responsibility of the Ministry. For construction, there are the General Engineering Corporation and the General Construction Corporation. Under the control of the respective Corporations, there are many major facilities such as the following: Type of facility Number Engineering bureau 19 Locomotive and rolling stock works 35 Communications and signals factories 10 Bridge factories 8 Sleeper factories 2 Engineering machinery factories 2 Wood preservative factories 9 Special equipment and tool factories 3 Offices for goods and materials supply 9 Survey and design institutes 5 Activities in 1990 included the following: Industrial production Locomotives 655 Passenger coaches 1,866 Rolling stock/wagons 18,597 Construction of track, km New track in operation 128 Doubled lines 355 Electrified lines 567 With respect to freight traffic, the rail system has been averaging an annual increase of about 4.5 percent per year since 1985: 1985 1,496.6 (10P ton-km) 1990 1,928.9 - 180 - 7.6 The inventory of locomotives reached over 13,000 by the end of 1990, an increase of 15.4 percent from the end of 1985: with respect to the total of diesel and electric locomotives, this reached 53.8 percent of the inventory, up 19 percent from 1985. Figures for the end of 1990 are as follows: Type of locomotive Number Percent Steam 6,279 46.2 Diesel 5,680 41.8 Electric 1,633 12.0 Total 13522 It is estimated that the proportion of work done by diesel and electric locomotives has been raised from 39 percent in 1985 to 71 percent in 1990. Energy Use 7.7 Energy use may be divided into the three categories mentioned: transportation, industry and engineering. The rail subsector energy consumption amounts to about 2.5 percent of the national energy demand. In 1990, consumption was as follows: Coal Diesel oil Electricity Total (106 t) (10' t) (10' kWh) (10' TCE) Transport Locomotives 13.97 2.70 4.10 16.21 (68.0%) Non loco. - - - 5.01 Subtotal 21M (89.0%) Industry - - 1.78 (7.5%) Engineering - - - 0.85 (3.6%) Total 20.83 3.011 7.13 23U (100.0%) - 181 - For the various types of locomotive, it can be seen that coal still provides almost 70 percent of the energy used: Fuel Quantity 10 TCE Percent Coal 13.97 (tons) 11.05 68.0 Diesel 2.70 (tons) 3.66 22.5 Electricity 4.1 (10' kWh) 1.53 9.4 7.8 Energy costs represent about 19 percent of total running costs. The energy costs per million ton-km are estimated as Y 1,523 for steam, Y 2,008 for diesel and Y 1,357 for electric locomotives. Energy Efficiency 7.9 The overall energy consumption for locomotives was equivalent to 11.9 kgCE per 1000 ton-km in 1985 and fell to 8.4 kgCE per 1000 ton-km in 1990, a decrease of 5.8 percent per year, reflected in a drop in energy consumption from 17.9 million TCE in 1985 to 16.2 million TCE in 1990. 7.10 The current efficiency of locomotives is reported as follows: Steam 6.1% Diesel 19.0% Electricity 20.8% Energy Efficiency Trends 7.11 The following data covering the period of the Seventh Five Year Plan (1986- 1990) shows the trends to greater efficiency: - 182 - Plan period 1985 1986-90 1990 Transportation Activity 10' t-kn 1,496.6 +4.5%/yr 1,928.9 Loco. energy use 106 TCE 17.9 -1.8%/yr 16.2 kgCE/t-km 11.9 -5.3%/yr 8.4 Output value Y 106 per year +424 percent per year +9.8%/yr TCE/Y 10,000 -0.28 (-7.1%/yr) Construction Output value Y 106 per year +416 percent +9.8%/yr Energy consumption TCE/year -26,200 percent -2.6%/yr TCE/Y 10,000 -0.28 (-11.3%/yr) 7.12 Savings in energy consumption continue to be made although savings are becoming more difficult and costly to achieve. For example, the energy saving in 1985 over the previous year was 9.1 percent while. the corresponding figure for 1990 was 5.3 percent. 7.13 Energy efficiency has been improved through a number of measures, such as: (a) Campaigns to improve energy awareness of staff; (b) Rules and regulations to promote energy saving; (c) Introduction of improved technology; - 183 - (d) Replacement of outdated and inefficient technology; (e) Replacement of steam locomotives by diesel and electric locomotives, with the emphasis on high horsepower machines; (f) In industrial plants associated with railways, funds have been allocated to reforming boilers, electric arc furnaces and kilns; (g) Application of energy saving techniques on locomotives, e.g., improved wheel lubrication; and (h) Increased use of computerized equipment for controlling transformer systems, power factor correction, temperature and heat supply monitoring. Potential for Improvement 7.14 A major factor which will contribute to energy efficiency is improved management of operations. For example, it has been estimated that 100,000 TCE could be saved each year if stoppage of locomotives outside stations could be eliminated and stop-start operation minimized. Optimizing train weights and running speeds will also help save energy, as will maximizing the use of diesel and electric traction. 7.15 Technological changes will lead to higher energy efficiency. These include improved AC/DC driving systems, and continuing replacement of inefficient equipment in factories. B. HIGHWAY TRANSPORTATION Subsector Characteristics 7.16 Highway transportation is a fast growing segment of China's transportation sector. The average growth rates of road freight movement and road passenger traffic registered 16 and 14 percent per annum respectively from 1980 to 1990. In 1990, road freight movement reached 335.81 billion ton-kIn, accounting for 12.8 percent of total freight movement, and road passenger traffic reached 262.03 billion passenger-kIn, accounting for 46.6 percent of total passenger traffic (Table 7.1). 7.17 Current per capita road freight movement and passenger traffic are about 300 ton-km and 240 passenger-km, respectively. They are very low compared with about 4,000 ton-km and 10,000 passenger-km per capita in the US, indicating great potential for growth. 7.18 The stock of motor vehicles (trucks, buses, vans and cars) has been increasing at 12 percent per year since 1980. There were over 5.5 million freight and passenger vehicles in 1990, with each category sharing 66.8 percent and 29.4 percent, - 184- Table 7.1: HIGHWAY FREIGHT AND PASSENGER TRAFFIC, 1980-90 Freight Passenger (Bn-t-km) % of Total (Bn-pas-kn) % of Total 1980 76.4 6.4% 72.95 32.0% 1981 78.0 6.4% 83.90 33.6% 1982 94.9 7.3% 96.39 35.1% 1983 108.4 7.7% 110.56 35.7% 1984 153.6 9.8% 133.69 36.9% 1985 169.3 9.3% 172.49 38.9% 1986 211.8 10.5% 198.17 40.5% 1987 266.0 12.0% 219.04 40.5% 1988 322.0 13.5% 252.82 40.7% 1989 337.5 13.2% 266.21 50.0% 1990 335.8 12.8% 262.03 46.6% Source: Statistical of China Yearbook, 1992. respectively. The number of vehicles in China remains low at about 5/1,000-person. More details about the motor vehicle stock are depicted in Table 7.2. 7.19 In addition, there were over 4.2 million motorcycles and about 4.6 million tractors running on China's roads in 1990. Current stock of cars is not reported in any official statistics. Judging from the increase of small passenger vehicles, the number of cars must have been increasing rapidly, too. The stock of small passenger vehicles grew over 6 times from 1980 to 1991. Their share of China's total motor vehicle stock increased from 13 percent in 1980 to 25 percent in 1991. 7.20 Current truck fleet consists of mostly domestic-made and gasoline-driven Jiefang and Dongfeng brands with 5 ton payload. Popular domestic-made diesel-driven trucks have 10 ton payload. Gasoline-driven vehicles account for over 80 percent current truck and bus stock. 7.21 The majority of registered motor vehicles are so-called own-account vehicles owned by nontransport enterprises, work units, collective or private entities. In 1991, only 316 thousand trucks and buses belonged to state-owned professional transportation enterprises. Food, trade and merchandise enterprises also operate a sizable number of business-oriented trucks. Even though the state-owned professional vehicles only accounted for 5.2 percent of total motor vehicle fleet, they contributed to 72 and 11 percent of total road passenger traffic and freight movement respectively, indicating the important role of professional companies. - 185 - Table 7.2: MOTOR VEICLE STOCK IN THOUSANDS, 1980-90 Large Small trucks trucks Buses Vans & cars Total 1980 1,257.6 41.4 113.0 237.8 1,782.9 1981 1,374.1 66.8 130.4 275.3 1,991.4 1982 1,480.6 86.9 145.6 296.2 2,157.5 1983 1,576.7 117.7 161.3 316.5 2,326.3 1984 1,695.6 188.1 182.3 380.5 2,604.1 1985 - - - - 3,211.2 1986 - - - - 3,619.5 1987 2,191.9 620.3 273.6 841.0 4,080.7 1988 2,370.1 718.8 299.4 1,004.4 4,643.9 1989 - - 311.9 1,152.4 5,113.2 1990 2,604.9 1,079.9 333.0 1,288.9 5,513.6 Note: Total figures also include specialty vehicles. Large trucks have an average payload of about 5 tons. Small trucks have an average payload of 1.7 tons. Buses have an average of 40 seats. Vans and cars are classified as small passenger vehicles in official statistics and have an average of 8 seats. Source: Statistical of China Yearbook 1992. 7.22 There was total 1.04 million km of roads in 1991, compared with 88.83 million km in 1980. Road quality is poor. First class highway (15-m wide with speed limit of 80-100 km/hr) only accounted for 0.33 percent of total road mileage and the share of second class highway (9-m wide with speed limit of 40-80 km/hr) was 4.6 percent of the total mileage of the roads. About 27 percent of the roads have asphalt or cement surfaces and the rest have stone or even dirt surface. Construction of first and second class roads has been extensive in recent years. 7.23 The efficiency of road transportation is low not only because of poor road quality but also because of the mix-up of multi transportation modes. Motor vehicles share highways with tractors, bicycles, and animal-pulled wagons (Table 7.3). 7.24 The Ministry of Transportation administrates the national roadway and waterway systems and is responsible for formulating regulations and policies of highway and water transportation, making development plans, and managing large enterprises affiliated with the ministry. Provincial transportation departments, which reports to the Ministry of Transportation, manage local roads and road transportation. - 186 - Table 7.3: ROAD TRAFFIC MIX ON HIGHWAYS (%) Total Motor Tractors Bicycles & traffic vehicles & others animal wagons All roads 100 48.7 34.8 16.5 State Highways 100 65.0 23.8 11.2 Provincial Highways 100 56.5 32.0 11.5 County Roads 100 42.8 39.6 17.6 Rural Roads 100 28.1 44.6 27.3 Note: Motor vehicles include trucks, buses, vans, and cars. Energy Use 7.25 There is no official statistics of energy consumption in highway transportation. Since road vehicles in China consumes mostly gasoline and diesel (there is a small number of buses powered by electricity and natural gas), we could assume that all gasoline use is for road transportation. It is difficult to estimate diesel use in road transportation because there are quite a few applications of-diesel. As indicated by data in Table 7.4, gasoline and transportation-sector diesel consumption have increased significantly in the 1980s, registering 7.4 and 8.4 percent per year from 1980 to 1990. Shortages of gasoline and diesel are widespread and leave many vehicles idling. Energy Efficiency 7.26 In general, fuel intensity of freight transportation has been declining while that of passenger transportation has been increasing, indicating the gradual efficiency improvement in trucking and the increasing comfort (which usually offsets efficiency improvement) level in passenger transportation. Table 7.5 reveals fuel intensity trends of professional trucking and passenger transportation. Vehicles operated by nonprofessional enterprises or work units usually perform not as well. 7.27 Compared with industrialized countries, China's road transportation is poor in fuel economy and low in operation efficiency. The contributing factors to the mediocre performance of road vehicles includes: (a) Inefficient Engine Design. Domestic-made trucks and buses usually have fuel efficiencies that are 10-20 percent lower than their modem foreign counterparts. Table 7.6 and Table 7.7 compares popular models of domestic-made trucks and buses with comparable foreign ones. Unlike those of Western countries, motor vehicle manufacturers in China - 187 - Table 7.4: GASOLINE AND TRANSPORT-SECTOR DIESEL USE, 1980-90 Increase over Increase over Gasoline (Mt) previous year Diesel (Mt) previous year 1980 9.986 3.161 1981 9.401 -5.8% 3.033 -4.0% 1982 9.931 5.6% 3.308 9.1% 1983 10.949 10.3% 3.656 10.5% 1984 11.997 9.6% 3.907 6.9% 1985 13.913 16.0% 4.544 16.3% 1986 15.002 7.8% 6.808 27.8% 1987 18.094 20.6% 6.500 11.9% 1988 18.516 2.3% 6.900 6.1% 1989 20.097 8.5% 7.210 4.5% 1990 20.426 1.6% 7.094 -1.6% Note: Transportation-sector diesel use includes railway diesel consumption and does not include diesel used by own-account trucks and buses. Source: China Energy Statistical Yearbook, 1991. do not subject to strict regulations on the fuel economy of their product. Progress in this regard is slow. (b) Inefficient vehicle fleet structure, especially that of trucks. The share of mid payload trucks is too high, while the shares of heavy and light-duty trucks are too low. The current ratio of the number of vehicles between large (payload > = 7 ton), mid (payload 5-7 ton), and small (payload = < 4 ton) trucks is 1:6:3, while the optimal ratio is considered to be 1:2:7. Diesel trucks which run more efficiently and tow heavier load than gasoline trucks only accounted for about 18 percent of the truck fleet. In comparison, in the US, not only all heavy-duty trucks are diesel-driven but also about 70 percent of the mid payload trucks are diesel driven. (c) Poor road quality and inadequate road capacity. High quality first class roads make up only 0.33 percent of China's total road mileage. Only 26 percent of the roads are paved. Tests have shown that motor vehicles consume 19, 23 and 40 percent more fuel respectively on second, third and forth-class highways than on first-class highway. With narrow unpaved roads been the majority plus low road density, highways in China are crowded. Transportation modes of all sorts share most of the highways. Mixed road traffic reduces transportation efficiency and fuel economy. - 188 - Table 7.5: FUEL ECONOMY OF TRANSPORTATION COMPANIES, 1980-91 (in liter/1 000-ton-km) Gasoline trucks Diesel trucks Gasoline buses Diesel buses 1980 87 62 78 66 1981 85 60 80 55 1982 82 59 79 56 1983 80 58 81 57 1984 79 57 79 56 1985 77 53 80 61 1986 76 51 81 64 1987 76 51 82 68 1988 72 48 82 64 1989 71 47 81 65 1990 71 48 87 72 1991 69 46 88 72 Note: Bus fuel intensity is converted from liter/vehicle-km. Source: China Energy Statistical Yearbook, 1991. According to the investigation of Anchin city highway management office, mixed traffic reduces vehicle speed by 18 percent compared with divided- lane traffic. A study about the Goubei highway in Liaolin province reveals that mixed traffic reduces vehicle speed by 32 percent, increases fuel consumption by 16 percent, and increases gear change five times compared with divided-lane traffic. (d) Small share of professional road transportation and mediocre operation management. Trucks owned by enterprises or work units that have no business-oriented trucking operation contribute to about half of the total road freight movement. The payload utilization rate of these trucks is about 30 percent compared with over 60 percent for trucks operated by the professional transportation companies. 7.28 China's car fleet consists of mostly imported cars and cars assembled in joint ventures, representing technologies of early to late 1980s. The fleet fuel economy of cars operated in China are considered low because poor road condition, lack of maintenance, and low octane gasoline all reduce energy efficiency. Gasoline consumption by cars is still small compared to that by trucks and buses. Since domestic car manufacturing is still in its formative stage, regulation on fuel economy and selectively choosing eager foreign investors could have great preventive impact on future gasoline demand. - 189 - Table 7.6: COMPARISON OF TRUCK FUEL ECONOMY, SELECTED COUNTRIES Engine Gross Payload Fuel economy type Model weight (ton) (ton) Horsepower (liter/1,000-t-km) Gasoline Jiefang CA15 (China) 9.1 5.0 115 53 Dongfeng EQ140 (China) 9.3 5.0 135 56 Diesel Yuejing NJ131 (China) 5.7 3.0 88 55 Huanghe JN162 (China) 17.3 10.0 210 26.5 Mitsubishi KFK216 7.8 4.3 33.3 Mitsubishi KFM316 12.3 7.0 21.3 Benz 1217L (Germany) 14.0 8.0 192 19.3 Note: Fuel economy figures are converted from liter/1000-vehicle-km to liter/1,000-ton-km by dividing the former with payload. Actual fuel economy varies with payload utilization. Table 7.7: COMPARISON OF BUS FUEL ECONOMY, CHINA AND JAPAN Engine Gross Seats Fuel economy type Model weight (ton) (person) Horsepower (liter/1,000-t-km) Gasoline JT662 (China) 9.3 45 135 6.0 Diesel IT680 (China) 15.1 60 160 4.2 Nissan KDA50T 17.5 60 3.9 Hino RU236 16 48 320 3.5 Note: Fuel economy figures are converted from liter/1,000-vehicle-km to liter/1,000-passenger-km by dividing the former with passenger capacity. Actual fuel economy varies with seats utilization. Potential for Improvement 7.29 Introducing modem engine designs and manufacturing technologies represents 10-20 percent increase in fuel economy over popular domestic engine models. 7.30 Increasing the share of diesel trucks in freight transportation saves fuel. On the average, diesel trucks use 20 percent less fuel per unit freight movement than gasoline trucks. This measure also calls for production adjustment of truck manufacturing industry and oil refining industry. Road conditions have to be improved to accommodate more and larger and heavier diesel trucks. Increasing the share of light-duty trucks may displace many large trucks owned by work units and make miscellaneous uses of trucks more efficient. 7.31 Promoting the development of professional trucking also help to displace underutilized own-account trucks. Fuel savings can be achieved by improved load - 190 - utilization rate and better maintenance of vehicles. There is significant potential for improvement in operation efficiency of the professional trucking companies. Investment in management and skill enhancement usually have very attractive economic returns. 7.32 Increasing gasoline octane value improves fuel economy. Studies have found that increasing gasoline octane value from previous 70 to current 80 resulted in 10 percent increase in fuel economy of popular gasoline truck models. Most operating gasoline trucks have to be modified to use higher octane-value gasoline. The payback time for the adjustment ranges from 16 to 28 months. The estimated gasoline savings from this measure are about 1 Mt gasoline per year. Considering that trucks in China usually have prolonged life, this measure is considered viable. 7.33 Improving road quality would greatly increases road transportation efficiency and significantly reduces fuel use. Over 90 percent of current highways is third and lower class roads. Upgrading roads, however, calls for major investment. 7.34 Other measures that help to improve energy efficiency include more extensive use of radial tires, preventive maintenance, and driver education. Energy Use and Efficiency Trends 7.35 Transportation has become an important constraint of China's economic development. Developing highway transportation is a major part of the integrated approach to resolve issues concerning transportation bottlenecks. Overall efficiency of transportation can be improved if the highway system could handle more of short-to- medium range movement of freight and passengers and make the railway system more available for large and long-haul activities. 7.36 Extrapolating current trends, we expect the importance of highway transportation to continue to increase. China's automotive industry has highlighted two major areas for development: heavy-duty trucks and passenger cars. Connecting major cities with superhighways is a high priority of China's planners and is encouraged by foreign investors. 7.37 Transportation activity tends to increase in tandem with the overall economic growth. With increasing trucking capacity and car ownership, large increase of gasoline and diesel consumption is expected. This development may cause large quantity of oil import if domestic supply falls short. 7.38 In freight transportation, energy efficiency is expected improve with new and better trucks replacing inefficient old trucks and with increasing fleet share of diesel-driven trucks. In passenger transportation, energy efficiency improvement may be offset by increasing comfort level (less crowded buses). The growing number of cars also reduce the overall energy efficiency of passenger transportation. - 191 - C. WATER TRANSPORTATION Subsector Characteristics 7.39 Water transport is an important element of the Chinese transport system: it is used extensively for movement of bulk cargo and for long distance freight transfers. Water transport represents about 50 percent of freight movements and 90 percent of import and export cargoes are moved by sea. The entire water transport system includes shipping, ports, inland waterways, salvage and ship repair activities: this section focusses mainly on shipping and ports. Table 7.8: HIsTORICAL DATA ON NUMBERS OF MOTOR SMPS Year Inland Coastal Ocean 1980 31,450 2,000 637 1981 32,740 2,188 677 1982 33,063 2,305 733 1983 36,632 2,651 741 1984 38,678 2,720 772 1985 44,708 2,706 878 1986 46,583 2,767 894 1987 44,751 2,811 938 1988 45,259 2,666 1,037 1989 46,082 2,637 1,130 1990 46,473 2,673 1,231 1991 44,855 2,479 1,265 Total net tonnage of motor ships in 1991: Inland: 2.20 million ton Coastal: 6.22 million ton Ocean: 16.33 million ton 7.40 The Ministry of Communication is the government administrative agency concerned with this part of the transport sector, responsible for water transport policies and regulations, for the development and macro-level planning of transport, and for the direct management of large-scale water transport enterprises. The Communication Bureaux of Provinces are the administrative agencies of local governments in relation to water transport and the management of local water transport enterprises. In a similar manner to the regulation, control and operation of road transport, Ministry responsibilities regarding water transport are discharged through several departments: - 192 - Table 7.9: PASSENGER TRAFFIC DATA, 1980-91 Year Inland Coastal Ocean Historical Passenger Turnover by Ship (100 million passenger-km) 1980 110 17 1.5 1981 110 26 1.7 1982 114 27 2.2 1983 120 31 2.4 1984 119 32 2.3 1985 133 38 2.8 1986 131 37 2.5 1987 134 41 3.4 1988 142 44 3.1 1989 131 42 3.1 1990 110 39 3.5 1991 116 42 4.1 Historical Freight Turnover by Ship (100 million ton-km) 1980 560 937 3,539 1981 564 942 3,643 1982 650 1,057 3,768 1983 698 1,102 3,977 1984 763 1,189 4,373 1985 827 1,419 5,328 1986 894 1,590 5,947 1987 947 1,735 6,575 1988 1,019 1,890 6,965 1989 1,021 2,244 7,688 1990 904 2,338 8,140 1991 960 2,772 8,990 (a) Planning-responsible for medium and long term planning and for annual plans for the water transport industry in accordance with national economic and social development, supervising implementation and ensuring state directives are met and urgent material transport needs are fulfilled. - 193 - (b) Transportation Administration-responsible for formulating relevant regulations; examining and approving the establishment of water transport enterprises and the opening of shipping routes for international or transprovince trade, and for promoting integrated transport systems. (c) Engineering administration-responsible for formulating regulations, standards, specifications and quotas relating to the construction and maintenance of water transport facilities; examining and approving design documents for key state projects, and checking implementation of these projects; studying problems of the development and utilization of inland waterways, including locks, dams and nonnavigable waterways. (d) Safety-responsible for checking the seaworthiness of vessels and vessel traffic control; supervising handling of dangerous cargoes; preventing damage caused by pollution from vessels and other environmental protection work; formulating rules and regulations related to water transport safety. (e) Science, Technology and Education-responsible for organizing and implementing key research projects; administration of higher education, adult education and professional and technical training related to water transport. To strengthen energy management, the Ministry of Communications set up an Energy Management Office whose functions include formulating energy efficiency policies, regulations and standards, and supervising their implementation. The Office also monitors energy consumption by major consuming enterprises and coordinates development of energy saving technologies. Reporting to the Office are the Energy Conservation Technology Service Center, the Energy Utilization Monitoring Center and the Energy Conservation Training Center, the latter being responsible for research and testing of energy saving technology in addition to personnel training. 7.41 Water transport may be divided into three major categories-ocean, coastal and inland. The ocean transport element has grown rapidly with the increasing development of foreign trade. In 1951, a joint Polish-Chinese firm was set up known as the Sino-Polish Joint Stock Shipping Company. In 1961, China began operating its own fleet under the name of the China Ocean Shipping Company (COSCO). COSCO is now the largest state-run ocean shipping fleet and owns and operates over 600 vessels totalling 15 million DWT, serving over 1100 ports in over 150 countries and regions. 7.42 By 1991, the companies authorized to conduct ocean shipping reached over 100 with 1265 ships of various types, totalling 16.33 million DWT (Table 7.18). China's fleet undertakes 87 percent of the total import and export traffic, as well as some international traffic for third countries. In 1990, freight movements was 904 billion ton- km (Table 7.19) and was 70 percent of the total freight volume for water transport departments. The average freight transport distance by sea was 8,508 km. - 194 - 7.43 The Chinese mainland coastline is 18,000 km long. Coastal transport forms an important north/south corridor for delivering domestic cargoes and has played a major part in the economic development of coastal areas. Coal is transported from north to south and grain form south to north: raw materials, industrial products and people are moved by a fleet of 2,479 vessels totalling 6.6 million DWT. There are 29 major seaports, including several large modernized ports such as Dalian, Qinghuangdao, Tianjin, Shanghai and Guangzhou. There are many modern terminals for crude oil, ore, bulk.grain and containers with a total of 968 berths, 296 of which can accommodate vessels of 10,000 DWT and above. 7.44 The largest ports are Shanghai and Dalian-primarily for coal, crude oil, steel, iron, timber and salt from north to south, and grain, metal ores and industrial products from south to north. Guangzhou is also important for transporting agricultural products, ores, salt and coal. 7.45 In 1990, freight movements amounted to 240 billion ton-km, about 20 percent of water transport trade (277.2 billion ton-km in 1991). The average distance for coastal shipments was almost 1,900 km. Three major companies under the Ministry of Communications-Shanghai Maritime Transport Bureau, Guangzhou MTB and Dalian Steamship Company-are responsible for 85.8 percent of coastal freight capacity and carry annually over 48 million tons of coal, 21 million tons of petroleum, 4 million tons of iron and steel, as well as over 9 million passengers. Total freight throughput in 1990 was 532.2 million tons via major coastal seaports. 7.46 There are 96 coastal shipping routes for passengers. Transport departments alone transported 25.84 passengers in 1990 out of a total of 51.33 million passengers through major ports in 1990. Table 7.19 provides historical data on passenger traffic. 7.47 Inland waterways are important in China. The main river systems include the Yangtze, Heilongjiang, Zhujiang Rivers and the Beijing-Hangzhou Grand Canal system. Motorized vessels for inland water transport number 44,855 and total 2.2 million DWT. In 1991, passenger traffic was 11.6 billion passenger-km (72 percent of the traffic of water transport departments) and freight traffic to 96 billion ton-km (8 percent of the total). The average inland freight transfer distance was 290 km in 1990 and 301 in 1991 (Table 7.13). 7.48 The Yangtze River is the most important artery for inland water transport, carrying 26 million persons and 63.45 million tons of freight in 1991. The China Changjiang River Shipping Corporation is the largest inland water transport enterprise, involved mostly in bulk cargo transport such as coal, petroleum, steel, building materials and grain, as well as passengers. 7.49 The characteristics and condition of inland waterways are important factors affecting vessel performance and fuel consumption. The gradual deterioration of waterway conditions and decrease of navigable channel lengths in the 20 years up to 1980 resulted in the proportion of freight being carried on inland waterways dropping to 7 percent and - 195 - waterways to 108,500 km in that year. While the situation has improved a little, statistics for 1991 show the length of inland waterways is still only 109,700 km (Table 7.10), of which 60,336 km (55 percent) have a water depth of 1 meter or more (Table 7.11). About 5,700 km (5.2 percent) are navigable for vessels of 1,000 DWT or above and about 15,850 km (14.5 percent) for vessels of 300 DWT or above. As Table 7.12 shows, there are 1,754 inland river ports: of these, 264 (15 percent) have an annual capacity of over 500,000 tons. Table 7.10: INLAND WATERWAY LENGTHS Year Total Length with 1 meter (km) and above depth 1980 108,508 54,800 1981 108,665 54,922 1982 108,634 55,595 1983 108,904 56,177 1984 109,273 56,732 1985 109,075 57,456 1986 109,404 57,456 1987 109,829 58,165 1988 109,364 57,971 1989 109,040 58,131 1990 109,192 59,575 1991 109,703 60,336 7.50 The construction of inland waterways and ports depends mainly on investment by the government and the levy of waterway maintenance tolls. The toll is levied on the basis of 8 percent of shipping company operating incomes and totals Y 200 to Y 300 million annually. This amount, together with other investments made by the government, is not enough to improve the condition of waterways through major projects and therefore most remain in much the same condition from year to year. In 1986, the average tonnage of inland waterway vessels was 100 DWT which gives rise to relatively high costs and fuel consumption. The situation is not believed to have changed much since then. - 196 - Table 7.11: INLAND WATERWAY NAVIGATION LIMITS, 1991 Type Navigable ship Depth Length (tonnage) (m) (kIn) 1st grade 3,000 3.5-4.0 1,378 2nd grade 2,000 3.4-3.8 162 3rd grade 1,000 2.0-2.4 4,202 4th grade 500 1.6-1.9 4,559 5th grade 300 1.3-1.6 5,553 6th grade 100 1.0-1.2 18,013 7th grade 50 0.7-1.0 13,608 Other <50 <0.7 62,164 Total 109,427 Table 7.12: MAiN RIVER SYSTEMS AND NUMBERS OF PORTS Mileage Number of (km) ports ? Changjiang Rivers 70,340 1,168 198 Heilongliang Rivers 5,808 40 3 Zhujiang Rivers 12,619 161 26 Jing-hang Canal 1,221 65 29 Huanghe Rivers 1,754 18 - Total 91742 JA452 Energy Use 7.51 Most of the energy consumed in water transport is in the form of diesel oil. Consumption by ships of the water transport departments was 5.71 million tons in 1991: Million tons Percent River vessels 0.83 15 Coastal 1.38 24 Ocean 3.50 61 IZa1 5.71 10 - 197 - Table 7.13: AVERAGE DISTANCE FOR FREIGHT TRANSPORT (kin) Year Inland Coastal Highway Railway 1980 198 1,320 34 526 1981 189 1,323 35 544 1982 203 1,373 38 539 1983 218 1,382 42 559 1984 234 1,398 45 597 1985 248 1,560 46 636 1986 261 1,512 47 662 1987 267 1,556 49 690 1988 273 1,575 55 702 1989 294 1,682 58 707 1990 290 1,758 56 725 1991 301 1,897 55 740 Historical data for fuel consumption are given in Table 7.14. Energy Efficiency 7.52 Table 7.15 gives historical data for fuel consumptions in the water transport subsector. In 1991, the average fuel consumption for freight movements by ship was as follows: kg per 1,000 ton-km Relative traffic River 8.15 100 Coastal 4.94 288 Ocean 3.89 936 7.53 The main factors affecting fuel consumption are the water transport infrastructure (e.g., ports and waterways), the technical performance of ships, and operations management. Most of the inland waterways in China remain in a natural state and many are unable to be used within the transport network due to blockage of the channels. Congestion in coastal ports of both vessels and cargo is a common problem due to insufficient capacity-lack of handling facilities for freight, low number of general cargo and container berths, etc. - 198 - Table 7.14: FUEL CONSUMPTION OF WATER TRANSPORT (10,000 ton) Year Inland Coastal Ocean Total 1980 76 71 181 328 1981 72 68 178 318 1982 78 75 181 334 1983 77 76 183 336 1984 82 79 190 351 1985 82 87 242 411 1986 84 94. 270 448 1987 86 96 300 482 1988 90 101 289 480 1989 92 115 323 530 1990 83 119 360 562 1991 83 138 350 571 Table 7.15: FUEL CONSUMPTION COMPARISONS FOR SHIPS (kg/1,000 ton-km) Year Inland Coastal Ocean Average 1980 12.4 7.50 5.11 6.43 1981 11.6 7.12 4.88 6.11 1982 11.1 7.01 4.79 6.03 1983 10.2 6.81 4.59 5.74 1984 9.97 6.56 4.34 5.48 1985 9.18 6.05 4.54 4.86 1986 8.75 5.84' 4.54 5.26 1987 8.47 5.47 4.56 5.15 1988 8.25 5.28 4.15 4.81 1989 8.46 5.08 4.21 4.79 1990 8.65 5.05 4.42 4.91 1991 8.15 4.94 3.89 4.46 7.54 The technical level of the vessels themselves is equivalent to international levels of the early 1980s, representing a technology gap of say 10 years. The fleet composition is typically oriented to small ships. Container and other specialist ships represent a small proportion of the tonnage: for example, about 60 percent of general cargo is containerized in developed countries and only 25 percent in China. The age of ships is also rather high. Of national fleets over 20 million DWT, China ranks 25 out of - 199 - 35 for the age of its ships. The average age of ships in the ocean-going category is 15 years and the coastal fleet has 30 percent of hips over 20 years old. Older ships have poorer fuel consumptions due to the aging of engines and the deterioration of hulls by corrosion. 7.55 Ship engines have been improved throughout the world and advanced foreign diesel engines operate at about 115-gm fuel per HP hour. It is estimated that Chinese ocean-going ships use 20 gm/hp.hr more than typical foreign counterparts. Inland and local coastal ships use older technology engines using typically 175-180 gm/hp.hr. 7.56 The operating rate of ships is also lower than foreign counterparts. For example, the average operating rate for ships is about 85 percent for China. Ocean-going ships may reach 93 percent but this is still far behind foreign fleets which often reach 98 percent or 355-360 operating days per year. Energy Efficiency Trends 7.57 In 1986, the Ministry of Communication issued "Regulations on the Management of Energy Conservation in the Transport Industry" which were "to strengthen energy management in a scientific way, to renew and renovate energy intensive equipment in a planned way, to utilize energy rationally" and utilize technological advances. The regulations include instructions for keeping proper energy consumption records and conducting routine analysis of performance. 7.58 Some results of attention to energy efficiency are as follows: (a) Old ships have been renovated and engines replaced with a saving of up to 20 percent of fuel. Large numbers of old steam ships have been replaced. (b) Optimization of the operation of older ships allows them to sail at lower speeds and decreased power, thus decreasing energy use by 8-10 percent. (c) Improvements to propeller design have led to energy savings of 8-10 percent without reducing the speed of the ships. (d) Improvements have been made to the load distribution of ships, regulating the length, depth and geometry of the ship's waterline and reducing wave resistance and friction around the ship: propulsion efficiency improves 5- 20 percent. (e) Hull roughness has been reduced by clearing rust and marine growth with underwater cleaners and coating the hull with smooth compounds to reduce friction. Results show energy savings of 5-20 percent. (f) Adding fins and nozzles near the stern of ships to improve flow patterns can reduce fuel consumption by 6-10 percent. - 200 - (g) Improved navigation systems are being adopted to help ships make full use of favorable weather conditions (e.g., winds) and the state of the sea (e.g., currents, waves). (h) Energy efficient ships are being tested, such as a shallow draft/wide beam bulk carrier, ships with modified stern shapes to improve water flow patterns, and sail aided motor ships. Energy savings from 8-30 percent are anticipated. Potential for Improvement 7.59 By continuing to apply the methods and technologies listed above, further improvements are expected. In addition: (a) The replacement of old ships by new energy efficient vessels will lead to major energy savings also, as many of the ships in the present fleet are already quite old. (b) Larger ships should form a larger proportion of the total, and this may require upgrading of ports, handling facilities and channel depths. (c) Further use of roll-on, roll-off transfer methods for cargo and passenger vehicles will shorten journey times and lead to more effective use of ships. (d) The average loading capacity of inland waterway barges will be increased. (e) The average transport distance of river vessels and increased power of tugs could reduce energy consumption by 20-40 percent. (f) Use of containerized transport should be promoted. Projected Activity and Energy Use 7.60 Forecasts of freight and passenger traffic have been made: - 201 - Freight Freight Number of Passenger quantity activity passengers traffic 106 t 109 ton-km 10' 10' pass-km 1990 539 1,139 188 15.8 2000 956 2,240 198 18.6 2010 1,499 4,011 204 21.5 2020 2,115 5,937 208 23.7 The following energy forecasts have been estimated: 2000 2010 2020 Freight and passenger activity (10' ton-km equivalent) 2,249.3 4,021.5 5,953.4 Fuel consumption (kg oil/1,000 ton-knm) 4.52 4.29 4.16 Forecast diesel fuel use (10' tons) 10.17 17.25 24.77 - 202 - 8. ENERGY USE IN BUILDINGS 8.1 Energy use in buildings, namely residential and commercial buildings, is an important issue not only because huge amount of energy is involved, about one fifth of total commercial energy consumption and all of biomass consumption, but also because health hazards of current building energy use are severe and extensive. Energy conservation measures that include fuel switching, energy-efficiency equipment, and improvement of energy services would reduce future energy demand as well as the costs of health care. A. RESIDENTIAL SECTOR Sector Profile 8.2 In 1990, China's population was 1.14 billion. According to average household sizes in urban and rural areas, the residential sector includes about 280 households and about 70 percent of them are located in rural areas. Since the late 1970s, there have been two distinctive demographic changes that have long-term impact on residential energy demand. China's population is moving faster than ever to urban areas and households are becoming smaller. Censuses in 1982 and 1990 indicated that the share of urban population increased five percentage points and the growth rate in the number of households outpaced that of the population by a factor of two. In contrast, there was virtually no net migration of population between rural and urban areas in the 1960s and 1970s and the growth rate of households lagged behind that of population from 1953 to 1982. 8.3 Households are smaller and richer than ever before. Official statistics have shown that the average real wage per employed person increased about 1.5 times from 1978 to 1990. The actually increase of personal income may be significantly larger because bonuses and cash awards have become very important nonwage income avenues. Corresponding to the increase in personal income, per capita living expenditure (in real terms) of rural and urban residents increased 2.1 and 1.8 times respectively from 1978 to 1990. The increase of household appliances such as color TV sets and refrigerators is phenomenal (Table 8.1). - 203 - Table 8.1: STOCK OF MAJOR APPLIANcES, 1978-90 (million) Electric Electric clothes Year fans TV sets washers Refrigerators 1978 9.20 3.04 0.01 0.09 1979 10.50 4.85 0.03 0.13 1980 13.65 9.02 0.26 0.19 1981 17.92 15.62 1.50 0.25 1982 25.91 27.61 5.90 0.44 1983 333.57 36.11 12.52 1.05 1984 43.40 47.63 19.28 1.82 1985 63.60 69.65 30.30 4.10 1986 86.05 92.14 43.33 7.27 1987 111.88 1116.01 57.62 11.81 1988 145.46 143.44 74.64 19.27 1989 173.33 165.93 87.01 25.54 1990 201.27 185.46 96.28 29.96 8.4 According to a survey conducted in 1989, there were about 3,543 million m3 residential floor space in the urban areas, about 1,547 million m' of it located in the official heating zone.1/ Table 8.2 reveals more details about China's building stock. 8.5 For both urban and rural residents, the largest increase in living space was achieved since the late 1970s. Per capita floor space for urban and rural residents was about 7 and 9 M2 , respectively,. in 1979 and increased to about 12 and 17 n' in 1989. Although rural residents generally have greater floor space, the quality of housing is usually higher in urban areas. 8.6 The urban building stock consists of mainly low-rise buildings. By the end of 1985, about 50 percent of the building stock was single-floor buildings and another 28 percent was two or three-story buildings.- There was no significant change in this I/ Traditionally, the government has divided the nation into three climate zones for selecting different heating options. Areas that have more than 90 days of below 5*C outdoor daily average temperature per year are classified as heating zone. Areas that have 60-89 such days, or areas that have more than 75 days per year during which the average daily outdoor temperature is less than 8*C are elassified as transition zone. The rest of the country falls into the nonheating zone. The heating zone occupies about two thirds of China's territory and has about 50 and 40 percent of the nation's urban and rural population, respectively. - 204 - Table 8.2: ESTIMATE OF RESIDENTIAL AND COMMERCIAL BUILDING STOCK, 1989 Urban a Rural La Comm. b Urban res. Rural res. All bldgs population population buildings buildings buildings floor area (mln) (mln) (mln m2 (mln m) & (m1n m) (mln m) Heating zone 146.5 338.5 458 1,547 5,755 7,760 Transition zone 87.7 280.2 330 1,176 4,763 6,269 Nonheating zone 61.2 212.9 231 821 3,619 4,671 Total 295.4 831.6 1.019 J4 14.137 18,700 La Population distribution derived from the official 10% sample data (SYC 1991). The total figures and the heating zone figures for urban buildings are from Tu and Wang (1991). Transition zone and nonheating zone figures are derived from the population ratio. Rural residential building stock is estimated from survey data of per capita floor space. , Source: Lawrence Berkeley Laboratpry, Report No. LBL-33867. situation by the end of 1989. Buildings are also relatively new. Close to 80 percent of current building stock has less than 20 years of service. 8.7 A great part of China is under the impact of the east Asian monsoon. Each year from October to March, cold winter monsoons from Siberia and the Mongolian plateau sweep down southward. This climate condition makes a large portion of China very dry and cold in the winter. Extreme differences in winter temperatures can reach more than 40*C between the north and the south. Compared with other regions of the world at the same latitudes, China's winter temperatures are 5-20*C lower on the average from south to north. This climate condition determined that extensive winter space-heating is needed in about two thirds of China. 8.8 Summer is long and humid in areas to the south of Yangzi river. At present, most households and offices use electric fans to drive off summer heat. Potential for the use of air conditioners is great. 8.9 In 1986 the Ministry of Construction introduced the "Energy-Efficient Design Standards for Residential Buildings in Heating Zone" and began to experiment on demonstration projects. The standards set two goals for saving space-heating energy. The first goal was to reduce space-heating fuel intensity of new buildings to the level that would be 30 percent less than their 1981 value by 1990. The second goal was to further reduce space-heating energy intensity of new buildings to the level that would be 30 percent less than their 1990 value by 2000. Local governments in heating zone were required to formulate their own energy-efficient residential building standards according to the national code. But it was not until 1990 that a few cities, including Beijing and Xian, announced detailed local standards. - 205 - 8.10 Progress in compliance with the building standards is not satisfactory because of the nonmandatory nature of the standards. Taking Beijing for example, from 1987 to 1990, the floor space of new residential buildings built up to par with the standards (most of it from demonstration projects) only accounted for about 10 percent of the total new residential floor space constructed in the same period. The situations in other northern cities are considered to be worse. Energy Use 8.11 Residential energy use in China has two distinctive features: (a) massive use of low-grade energy sources such as coal and solid biomass, and (b) space heating and cooking dominate end uses. These features reflect China's special climate condition as well as relatively low standard of living. 8.12 The residential sector consumed about 430 MTCE energy in 1990, including 170 Mt coal, 240 Mt dry firewood, 280 Mt dry crop stalks, and 48 billion kWh electricity. Consumptions of gaseous fuel and cogenerated heat were small. More details are revealed in Table 8.3. 8.13 Cooking and space heating are responsible for an unusually high percentage share of fuel consumption, accounting for about 95 percent of total residential energy use in 1990. Electricity's share increased from less than 2 percent in 1980 to about 5 percent in 1990. In comparison, over 60 percent of the U.S. residential energy use is from electricity. 8.14 Large-scale biomass consumption is a striking feature of residential energy use in China. The growth rate of biomass consumption is gradually diminishing as end-use efficiency improves and coal becomes more accessible. Biomass still commanded about 65 percent of residential energy use in 1990, compared with its share of 70 percent in 1980. Current firewood consumption is estimated to exceed sustainable amount by 40 percent. About half of the available crop residues are also consumed for cooking and space-heating. This practice reduces the amount of organic materials that needs to be returned to the soil. 8.15 While anthracite resources in China are abundant and the quality is generally high, current anthracite supplies to the residential sector seem to be inadequate. The annual production of anthracite is about 200 Mt. Only 30 Mt is distributed to the residential sector while twice as much may be needed according to current cooking coal use. Similar situation exist in natural gas supply with more than 80 percent of it being used by industries. 8.16 Characteristics of Urban Residential Energy Use. Energy consumption of urban households is dominated by coal, which made up of about 75 percent of urban residential energy use in*1990 (Table 8.4). The growth rates of demand for electricity and gaseous fuel from 1985 to 1990 were about 17 and 18 percent per year, while that of coal use was negligible. - 206 - Table 8.3: RESIDENTIAL ENERGY USE BY ENERGY SOURCE, 1980, 1990. (MTCE) Biomass Coal Gaseous Heat Elec- a L Kerosene fuel & Ld tricity 1980 228.7 82.6 1.5 1.7 1.6 4.3 1981 233.7 86.3 1.7 1.8 1.6 4.8 1982 238.8 88.9 1.5 1.8 1.6 4.9 1983 244.0 93.3 1.8 2.0 1.7 5.5 1984 249.4 99.8 2.2 2.4 1.8 6.4 1985 254.8 111.6 1.8 2.9 1.9 9.0 1986 260.4 113.0 2.0 3.6 2.2 10.0 1987 266.1 117.7 1.9 4.0 2.7 11.6 1988 272.0 125.1 1.8 5.2 2.6 13.9 1989 277.4 121.7 1.9 6.2 2.8 16.0 1990 283.0 119.2 1.5 6.6 3.1 19.4 L Figures are linearly extrapolated from 1979 and 1987 data. Biomass includes mostly firewood and crop stalks. L& Includes raw coal and briquettes. & Includes LPG, natural gas, and gases derived from coal. Ld cogenerated heat for district heating. Source: Lawrence Berkeley Laboratory, Report No. LBL-33867. 8.17 Characteristics of Rural Residential Energy Use. Rural households show quite different patterns of energy use from those of urban households. Although coal dominates modern energy use, it is overshadowed by the enormous amount of biomass consumption in the rural areas. In 1987, biomass commanded about 80 percent of rural household energy use while coal only contributed 18 percent. Kerosene is considered to be mostly used for lighting. About 40 million rural households still have no access to electricity. Table 8.5 reveals survey data on rural household energy use in 1979 and 1987. 8.18 If current biomass consumption is to be replaced by coal, about 160 MTCE, or 230 Mt raw coal-approximately one fifth of current total coal production-would be needed. By guiding the energy transition toward levels of modern and sustainable uses of biomass and other renewable energy sources, the government plays an essential role in minimizing the energy stresses of urbanization. 8.19 Electricity Use. Because of the rapid increase in appliance ownership, lighting has become a much less important component of residential electricity use today than in the early 1980s. For an above-average urban household that owns a refrigerator, - 207 - Table 8.4: URBAN RESIDENTIAL ENERGY MIX, 1980-90 (MTCE) Bri- Raw quettes Kero- Town Cogen. Elec- coal La La sene LPG gas Lh heat tricity 1980 33.2 13.2 0.1 0.7 1.0 1.6 2.5 1981 34.3 14.3 0.1 0.8 1.0 1.6 2.8 1982 34.4 15.5 0.1 0.8 1.0 1.6 2.8 1983 35.7 16.8 0.1 1.0 1.0 1.7 3.2 1984 38.0 18.2 0.1 1.0 1.4 1.8 3.7 1985 42.7 19.7 0.1 1.6 1.3 1.9 5.0 1986 43.0 20.9 0.2 2.0 1.6 2.2 5.9 1987 42.6 22.2 0.1 2.1 1.9 2.7 6.6 1988 43.4 23.6 0.2 2.3 2.9 2.6 7.9 1989 39.1 25.1 0.1 2.6 3.6 2.8 9.1 1990 36.9 26.6 0.2 2.7 3.9 3.1 11.0 La Figures are linear extrapolation of 1981, 1985, and 1988 data. Raw coal use is calculated by subtracting briquettes consumption from total coal use. Lh Town gas includes natural gas and gases derived from coal. Source: Statistical Yearbook of China, 1992. a color TV set, and a clothes washer, lighting may only account for 10-15 percent of its annual electricity use. On the other hand, for an average rural household, lighting still accounts for most of its annual electricity use. The greatly changed residential electricity consumption pattern is revealed in Table 8.6. Energy Efficiency 8.20 . Households in China not only consume great amounts of inferior energy sources such as coal and solid biomass, but also consume energy inefficiently, resulting in more pollution and fewer energy services per unit energy consumed. In rural areas, firewood is often burned in stoves that have roughly 10 percent heat efficiency. In many urban households, raw coal is burned for daily use. Coal-fired stoves are still popular for space heating. In addition, most buildings are simply constructed, with minimum insulation, which increases energy use and decreases comfort. 8.21 Efforts have been made to improve energy services in residential sector since the late 1970s. The massive efficient-stove program in rural areas and the promotion of gaseous fuel and honeycomb coal briquettes in urban areas are successful examples. Many - 208 - Table 8.5: RURAL RESIDENTIAL ENERGY MIX, 1979 AND 1987 (MTCE) Materials 1979 % 1987 % Crop stalks 113.7 43.6 130.3 39.2 Dung cake 6.3 2.4 3.2 1.0 Firewood 103.8 39.8 132.6 39.9 Coal 32.6 12.5 59.6 17.9 Kerosene 1.5 0.6 1.9 0.6 Electricity 3.1 1.2 5 1.5 TaQLI 26. fhQ11032A 1 "] Source: Lawrence Berkeley Laboratory, Report No. LBL-33867. Table 8.6: ESTIMATES OF RESIDENTIAL ELEcTucrrY END UsEs, 1981 vERSUs 1989 (billion kWh) Lighting Refrigerators TVs Fans Clothes washers Other 1981 10 0. r 0.5 0.6 0 0.6 1989 15 10 7 4 2 2 Source: Lawrence Berkeley Laboratory, Report No. LBL-33867. other conservation efforts such as developing district heating and adopting energy-efficient building standards, however, are still preliminary and experimental. 8.22 Cooking and Domestic Water Heating. Cooking is the number one energy use in China's residential sector, due, in part to the inefficient use of solid fuels. Most rural households use firewood stoves and most urban households, coal fired stoves. Only about 10 percent of current urban population use gaseous fuel for cooking. The usage of hot water is limited. Households boil water for tea and cooking and other necessary daily uses. Most households do not have hot-water shower devices which, however, are gaining popularity with increasing accessibility of gaseous fuel. 8.23 The promotion of honeycomb briquettes has been a major residential coal- saving activity. Firing honeycomb briquettes in efficient stoves could achieve heat - 209 - efficiency as high as 40 percent, about three times that of stoves burning raw coal. In daily practice, heat efficiency may be significantly lower, usually about 20 percent. In comparison, heat efficiency of gas-fired stoves usually reaches 50 percent. 8.24 While cooking fuel is basically guaranteed for urban households, many rural families still suffer from shortages. Because ordinary firewood stoves have only about 10 percent heat efficiency, the demand for firewood and crop residues in rural areas is often excessive. Seeing the danger of chronic rural fuel shortages and unsustainable firewood consumption, the government launched efficient-stove and tree-planting programs in the early 1980s. By 1987, about 45 percent of rural households had been equipped with energy-efficient stoves with rated heat efficiency of 25-30 percent. This program was estimated to have been able to save 20 MTCE of firewood per year as of 1987. 8.25 One other energy-efficient and much cleaner option for rural cooking is the utilization of biogass, a viable fuel source in areas to the south of Yangzi river. Programs of constructing biogas digesters for rural households has been undertaking for about two decades. The results are mixed, depending on regional conditions and the commitment of both the households involved and local management. 8.26 Space Heating. There are three modes of space heating in urban areas: coal-fired stoves, central heating provided by small boilers, and district heating provided by large boilers or cogeneration plants. Rural households use either firewood or coal-fired stoves for space heating. About two thirds of the urban households in heating zone are heated by coal-fired stoves and the rest is heated mostly by small-boiler central heating systems. The share of district heating systems is small, probably about 5 percent. 8.27 Stove heating is unhealthy and low in comfort levels. Households using heating stoves often have lower indoor temperatures and shorter heating time. Usually only one room is heated and the stove may be moved outside of the apartment in the night to avoid CO poisoning. For these reasons, households that use stoves for space heating have much lower seasonal heating fuel intensities than those using central heating facilities- -18 versus 30 kgce per square meter floor space. 8.28 Centrally heated buildings are mostly serviced by small boilers with typical capacities of 1-4 ton steam per hour (ts/h). One ts/h boiler capacity typically heats a floor area of about 4,000 m, approximately 100 households. Small-boiler central heating systems have two major energy-efficiency problems: low capacity factor (average heating load/rated boiler heating capacity in terms of heated floor space) and poor boiler heat efficiency. While the former is usually related to the design and operation of the heating systems, the latter is basically due to outdated boiler manufacturing technology. With the combined problems of the distribution network and the boiler itself, small-boiler central heating systems usually have 50 percent or lower overall efficiency. 8.29 District heating systems usually utilize medium to large industrial boilers (10, 20 and 40 ts/h). The 10 ts/h boilers are most popular, with a usual 70-80 percent rated heat efficiency. Problems, such as partial loads, operation by unskilled personnel, -210- and the use of low-quality coal, that exist in small boiler systems also impair the energy efficiency of large-boiler heating systems. Conservation measures may yield significant economic benefits in the case of large boilers because of the high replacement costs. The residential sector does not benefit much from existing cogeneration capacity which primarily serves industrial users. With serious shortages in electricity supply at present, heat supply may be sacrificed for power generation. 8.30 Technically speaking, large district heating systems are efficient heating modes in northern China, giving the climate condition and the dwelling pattern. In practice, 'difficulties are often encountered when these systems try to meet expectations. Reports indicate that some of the newly built district-heating systems actually run less efficiently than many of the well-operated small-boiler systems because of insufficient hook-ups or the slowness in making new hook-ups. 8.31 The efficiency of China's central heating systems is significantly impaired by the poor quality of heat distribution networks, which are often not well-insulated and are operated with malfunctioning equipment. The average heat loss of the distribution networks is about 15 percent, while 10 percent is considered to be appropriate. The unbalanced hydraulic working state and the lack of flow control valves create problems such as overheating for households near the mains and underheating for those end-of-the- pipe households. The common practice of resolving the problem is to increase pumping capacity which reduces boiler operation efficiency because of reduced outgoing and returning water temperature difference. 8.32 Promoting central heating systems may not help save heating coal use if we compare their fuel intensity to that of stoves. But using central heating facilities represents a major improvement of the standard of living for urban households in northern China with respect to both thermal comfort and indoor air quality. By applying district heating, the government would also have much easier control over the emissions of air pollutants. 8.33 Poor thermal integrity of residential buildings in China reduces thermal comfort and increases space conditioning energy use. Solid bricks are the predominant wall material in China. Heat loss is substantial through exterior walls and roofs that have only minimum insulation. Table 8.7 compares some heat performance features of typical apartment buildings in northern China with those of Canada residential buildings in areas of similar heating degree-days. The difference are striking. Since Canadian residential buildings are mostly wooden structures, a low heat transfer coefficient is achieved more easily. Using hollowed bricks and double-glazed windows can reduce heat losses in buildings significantly. 8.34 Lighting. Although fluorescent lamps are commonly used in urban households, incandescent light bulbs are still the popular choice for lighting. This can be partly informed from the annual production of light bulbs which registered 2 billion for incandescent bulbs and 200 million for fluorescent lamps in 1990. Lighting lumen levels are usually low in Chinese households and people usually do their best to save electricity. - 211 - Table 8.7: HEAT-TRANSFER COEFFICIENTS OF TYPICAL MULTI-STORY CHINESE APARTMENT BUILDINGS VERSUS THOSE OF NORTH AMERICAN HOUSES Exterior wall Window Roof (W/ml-*C) (W/M2-*C) (Wm-oC) Beijing Present status 1.57 6.40 1.26 New standards 1.28 6.40 0.91 Harbin Present status 1.28 3.26 0.77 New standards 0.73 3.26 0.64 Canada Comparable to Beijing 0.36 2.86 0.23-0.40 Comparable to Harbin 0.27 2.22 0.17-0.31 Source: Lawrence Berkeley Laboratory, Report No. LBL-33867. Installations of compact fluorescent lamps are rare because their high purchasing costs and consumer's disbelieve in their reliability. 8.35 Appliances. Major electricity-consuming appliances include refrigerators, TV sets, clothes washers, and electric fans. Air conditioners are still rare in households. Popular domestic-made refrigerators (two-door 170 liter) consume about 400 kWh electricity per years which is significantly higher than similar contemporary models made in Japan or Korea. For example, the average electricity consumption of 200 liter two-door Korean models already reached 240 kWh/year in 1986. Potential for Improvement 8.36 A household would be able to save about 20 percent of its cooking coal by switching from raw coal to honeycomb briquettes, other conditions being equal. Switching from coal to gaseous fuel represents the largest efficiency gain and help to reduce indoor as well as ambient air pollution. Limited natural gas resources and financial and technological difficulties in large-scale coal gasification may hinder this process. 8.37 Many least-cost measures, such as better quality coal for boilers and better training for boiler operators, can save coal use in central heating. Resolving problems in the distribution networks and optimizing boiler operation will significantly improve the energy efficiency of existing central heating systems. In a demonstration project, a team of engineers is able to raise the seasonal operation energy efficiency of a central heating system (with a 10 ts/h boiler) from 55 percent to 64 percent by installing new flow-control valves and a computer system for boiler operation. The cost of the measure is only Y 50 -212 - per annual TCE which is substantially lower than the cost of bring 1 TCE coal to the market. 8.38 Improving building thermal integrity is a major step in saving space conditioning energy use and is the primary goal of energy efficient building standards. The long-term effect of high thermal-integrity buildings cannot be underestimated. Unfortunately building construction in the past have failed to adopt this important energy- saving measure and is continuing to perform poorly in this respect due to inadequate regulatory enforcement, insufficient technical support, temporary financial constraint, and the pressure of soaring housing demand. 8.39 Improving lighting efficiency mainly lies in the hands of the lamp manufacturers because current household lighting practice is already very frugal. The cost- effectiveness of introducing compact fluorescent lamps depends on what wattage of incandescent bulbs that are replaced, the time of use, and electricity prices. 8.40 Great improvement can be achieved in reducing refrigerator electricity consumption. For example, a modified two-door 177 liter model produced by a Shanghai plant consumes 292 kWh/year, representing a 27 percent reduction in electricity use compared with popular comparable models. The Korean refrigerator industry, with the assistance from the government, was able to reduce the average unit electricity use of 200 liter refrigerators from 672 kWh/year in 1980 to 240 kWh/year in 1986. The Korean experience is a good example of the potential and swiftness of possible energy efficiency improvement for refrigerators. Energy Use and Efficiency Trends 8.41 . The demand for electricity and gaseous fuels will continue to increase strongly and the dominance of coal will gradually decline. But a large decrease in coal use is unlikely in the near future because of the nature of domestic energy resources and the large space-heating demand. 8.42 From the experiences in the 1980s, construction of district-heating facilities (especially cogeneration facilities) is quite expensive. From the aspect of providing equal services with minimum pollution and high energy efficiency, district heating systems do have advantages over small coal-fired central heating systems and stoves in heating-zone areas. But future technological development may also make small coal-fired central heating systems attractive and the increasing availability of gaseous fuels is also likely to make gas-fired heating a possible alternative. 8.43 The continuing efficient stove program aims at equipping all rural households with energy-efficient stoves by the year 2000. If the goal materializes, potential firewood and crop stalk savings are considerable. Although end-use efficiency is of great importance to China's rural energy development, it is unlikely that conservation alone can solve rural fuel supply problems. History has shown that while people have been using more efficient equipment, they are also using more energy as the standard of - 213 - living rises and their lifestyle changes. Thus, it is essential to develop other alternative fuel supplies. The Chinese government has shown strong interest in planning a sustainable energy future for rural areas and has made great efforts to address this important issue. 8.44 Rising household incomes are expected to foster two developments in residential energy use. Domestic water heating (for showing) has become an increasingly popular activity as gaseous fuels become more accessible. Market research shows that the demand for air conditioners has grown significantly since 1990. Such trends will lead to greater demand for gaseous fuels and electricity in the future. 8.45 Compared with appliances used in American households, those used in China are small and low-power machines, especially in the categories of refrigerators and clothes washers. The Chinese households are also much more conscious about electricity used by appliances. Continuing increase in personal income has made possible for households to purchase larger refrigerators and TV sets and clothes washers with spinning cylinders instead of single washing cylinder washers. This trend is sure to offset some gains in energy efficiency. B. COmmERCmL BUILDINGS Sector Profile 8.46 All nonindustrial and nonresidential civilian buildings are considered as commercial buildings. According to the latest survey, commercial building stock stood at 1,019 million m2 in 1989. About 52 percent of the total stock was classified as commerce buildings, i.e., those that house shops, restaurants, and other for-profit businesses. Office buildings accounted for 30 percent of the total stock and the share for educational and academic buildings was 3 percent. The unclassified commercial building stock was significant with a 15 percent share of the total stock. 8.47 Commercial buildings in China basically share similar physical characteristics with residential buildings. Most of them are not insulated and about half of them need extensive winter space heating. Low-rise buildings contribute to much of the total floor space. 8.48 Construction of new commercial buildings has been intensive since the late 1970s. The large increase of fully conditioned commercial buildings (with complete cooling and heating systems) is a major development with great long-term impact on commercial building energy use. Energy Use 8.49 Commercial buildings, presumably all in urban areas, consumed about 40 MTCE energy in 1990 in which coal contributed 55 percent and electricity shared 28 percent. Table 8.8 depicts the mix of energy demand from commercial buildings. - 214 - Table 8.8: ENERGY USE BY ENERGY SOURCE IN THE COMMERCIAL SECIOR, 1980-90 (MTCE) Coal Oil Gas Cogen. heat Electricity 1980 11.1 4.1 0.3 0.7 3.5 1981 11.7 3.6 0.3 0.7 3.8 1982 12.6 3.5 0.2 0.7 4.1 1983 13.8 3.7 0.2 0.7 4.6 1984 15.7 3.3 0.2 0.8 5.2 1985 16.6 3.9 0.3 0.3 6.5 1986 17.6 3.7 0.4 0.3 6.8 1987 18.4 3.8 0.5 0.4 8.0 1988 20.4 5.2 0.5 0.5 9.2 1989 20.8 6.0.. 0.5 0.4 10.1 1990 21.8 5.6 0.5 0.5 11.3 Source: China Energy Statistical Yearbook, 1991. 8.50 Energy is mainly used for space heating and lighting in commercial buildings. Cooking fuel is also significant because of the popularity of restaurants and work-unit cafeterias in China. Other uses include public bathhouses and teahouse boilers. 8.51 Lighting is still the largest electricity user in commercial buildings. Buildings with heating, ventilation and air conditioning (HVAC) systems are becoming important energy users in large cities and coastal urban areas. Energy Efficiency 8.52 Most restaurants and cafeterias use raw coal as cooking fuel, resulting in low energy efficiency and high air pollution. 8.53 Coal or charcoal-fired stoves provide space heating for about 75 percent of the floor space in heated commercial, indicating the low quality of energy service in commercial buildings. Seasonal fuel intensity of space heating is lower in commercial buildings than in residential buildings, registering 15 kgce/m2 for stove-heated space and 20 kgce/m for centrally heated space. 8.54 Lighting efficiency is considered low because most fluorescent fixtures in commercial buildings are equipped with electromagnetic ballasts and large wattage incandescent lamps are also widely used. - 215 - 8.55 Most HVAC systems installed in space-conditioned commercial buildings are inefficiently operated because of poor building design, lack of maintenance and mismanagement. Potential for Improvement 8.56 There have been attempts to use large honeycomb briquettes for commercial cooking and teahouse boilers. Many commercial users such as restaurants prefer raw coal because they usually need fast combustion and high flames. For these users, gaseous fuel may be the only favorable substitution. Using briquettes in small boilers, however, could be an effective measure of saving coal and reducing air pollution. 8.57 Lighting efficiency improvement is considered great in commercial buildings because of large wattage lamps are used and the operating time is usually long. High- efficiency fluorescent tubes and electronic ballasts are considered very cost-effective measures. Estimate rate the electronic ballast/fluorescent lamp system 25 percent more efficient than the electromagnetic ballast/fluorescent lamp systems. A 36W high-efficient TLD fluorescent tube is able to put out the same amount of lumens as a 40W conventional TL tube. 8.58 Many tourist hotels with HVAC systems do not have any better insulation than ordinary hotels. Electricity can be saved by improving the thermal integrity of the building envelope, which includes window improvement, wall and roof insulation, and better building design. Energy Use and Efficiency Trends 8.59 Until recently there have been limited energy-conservation efforts in commercial buildings and there is no specific conservation policy aimed at commercial buildings. Since the stock of modem hotels and office buildings is increasing at rapid rate in major cities and coastal areas, HVAC systems is likely to emerge as a major energy use in commercial buildings in the next 10 years. There has also been a fast increase in the use of room air conditioners in offices in recent years, so electricity use for air conditioning will increase dramatically. 8.60 In order to save coal and electricity, there is an urgent need to improve the thermal integrity of commercial buildings. This calls for the establishment and enforcement of energy-efficient commercial building standards. If current practice continues, the high-volume construction in the next 10 years will have a significant impact on energy demand of commercial buildings in the decades to come. Retrofitting old buildings is often costly. APPENDIX A Case Study Analyses: Forecasted Applications and Impacts on Energy Use and Emissions This section presents the results of forecasts of the "business as usual" (BAU) and "accelerated" (ACCEL) scenarios for adoption of each of the technologies or modifications evaluated as case studies. Both BAU and ACCEL scenarios were developed from information supplied in the Background Reports and by studying trends in the respective industries in other countries. Technical judgement was used to develop the respective scenarios, which were then used to calculate the forecasts of changes in energy consumption and emissions for 2000 and 2010. Various ratios were also calculated, including the required investment cost (per unit of processing capacity) necessary to adopt the various technologies, and the investment per annual tonne of CO emission reduction and per annual TCE saved. These ratios are reported in the full outputs of each case study evaluation and in the summary table included in this Appendix. However, the numbers are a only a rough guide to the attractiveness of each measure and are therefore not highlighted. A better guide to relative economic attractiveness is the net annualised benefit (or cost) per tonne C02 reduction or per TCE saved. These figures take into account the fact that many measures are indeed positively beneficial to the industry or plant concerned: these data are developed in a separate report. Put simply, energy efficiency is usually very good business, and the reduced emissions of global warming gases that are achieved at the same time are an extra bonus. Calculation data are reported for the following case studies: Iron and Steel Industry Ml Open hearth converters replaced by BOF systems M2 Continuous casting M3 Reheat furnace renovation M4 BF gas recovery for steam/electricity generation Non Ferrous Metals M5 Aluminium plant renovation Building Materials E1 Replace old dry kilns by preheater/precalciner systems B2 Wet to dry conversion B3 Vertical shaft kiln renovation PaRer L1 Black liquor recovery L2 Cogeneration in a paper mill Textiles T1 Cogeneration in a textile mill T2 NaOH recovery T3 Energy management Chemicals CH1 Medium size ammonia plant renovation CH2 Small ammonia plant renovation and waste heat recovery CH3 New membrane process at NaOH plant Equipment El High efficiency motors E2 Variable speed motors E3 Electric motor repair centres E4 Steam traps CASE STUDY ANALYSIS NUMBER Ml Open Hearth Converters Replaced by BOF Without With - project project Open Hearth BOF NOTES Net energy use kgCE/t 75.11 26.60 1 Current OH capacity about 13 MHtpy steel of uhich about 10 percent will convert to C02 emission kg/t 92.02 40.56 electric steel making. S02 emission kg/t 14.23 0.60 TSP emission kg/t 222.05 45.20 2 This leaves 11.7 MMtpy OH capacity to be Investment For CS million RMB 0 1050 converted to BOF. Capacity For CS million TPY 2.60 3.00 3 It is assumed that only one large plant Investment per TPY RM/tpy BOF 350 (capacity 3 MMtpy after conversion, like Present cap. OH million TPY 11.7 Anshan) will convert to BOP by 2000. 4 For the BRU case, it is assumed no other conversion occurs before 2010, the cost Calculated -- Financial -- IRR 16.1 percent being high. IRR and payback not particularly Calculated payback inc construction time 13 years attractive. BAU FORECAST 1990 2000 2010 5 For the RCCEL case, it Is assumed that Capacity OH 1OA6 Epy 11.7 6.7 6.7 Funding is made available to all existing OH Capacity BOF IOA6 tpy 0.0 3.0 3.0 operators and conversion is completed by 2010. Energy OH 10A3 tCe/yr 978.8 653.5 653.5 Energy BOF 10^3 tce/yr 0 79.9 79.6 6 Note that original capacity of 0 For OF Total energy 10^3 tce/yr 876.8 733.3 733.3 does not imply this technology does not Energy saved 10^3 tee/yr 0 145.5 145.5 mm exist in China; For this exercise, only the C02 10A3 t/y 1076.6 922.3 922.3 conversion of 11.7 OH capacity is considered. S02 10A3 t/ 166.5 125.6 125.6 TSP 10A3 t/y 2596.0 2067.4 2067.4 C02 removal 10A3 t/y 0 154.3 154.3 NW Investment million RHO 1050.0 1050.0 Invest C02 removal RMS per t/y 6804 6804 U Invest TCE saved RMB per TCE/y 7215 7215 MM ACCELERATED FORECAST Capacity OH IOA6 tpy 11.7 6.7 0.0 Capacity BOF IOA6 tpy 0.0 3.0 11.7 Energy OH 10^3 tce/yr 978.8 653.5 0.0 Energy SOF 10A3 tce/yr 0.0 79.8 311.2 Total energy 10^3 tce/yr 870.8 733.3 311.2 Energy saved 10^3 tEce/yr 0.0 145.5 567.6 MM C02 10^3 t/y 1076.6 922.3 474.0 S02 10^3 t/y 166.5 125.6 7.0 TSP 10A3 t/y 2596.0 2067.4 528.6 C02 removal 10A3 t/y 0.0 154.3 601.68M Investment million RMB 1050.0 4095.0 Invest C02 removal.RMS per t/y 6804 6804 un Invest TCE saved RMS per TCE/y 7215 7215 MM CASE STUDY ANALYSIS NUMBER H2 Continuous Costing Replacing Ingot Route Uithout Uith project project ingot casig cOn casting NOTES Net energy use kgCE/t 64.79 24.19 1 Estinate of current continuous casting capacity based on 23.?Z of pig iron C02 enission kg/t 42.19 15.75 production. S02 emission kg/t 1.77 0.66 TSP enission kg/t 0.71 0.27 2 Assume 90Z of future steel make uill be processed by ingot or concast routes. Investument for CS IOftG RflD 0 1580 Capacity for CS 106 tpy 1.60 3.50 3 For neu capacity. 90Z uill be concast Investment per tPV RHS/tpy concast 451 anyua. By 2000, 502 of pig iron uill be 1990 pig iron cap 10n6 tpy 62.4 concast, 70Z by 2010 for BRU and 90X for 2010 pig iron cap 10,6 tpY 62.4 RCCEL case.(as stated by the "inistry). 4 Sy naterial balances, anounts of enisting Calculated -- financial -- IRR 19.6 percent ingot casting capacity to convert to concast Calculated payback inc construction time 9 years to reach these objectives nay be estinated -- see sunary belou. BRU FORECAST 1990 2000 2010 Cap ingot casting tll tpq 47.6 45.9 31.4 Cap can casting 11 tpy 14.9 16.6 31.0 0.237 Cap total H tpy 62.4 62.4 62.4 Energy ingot cast.1013 tce/g 3084.0 2967.4 2034.4 Ener concastg 10f3 tce/y 359.0. 401.6 749.9 Calculation sunary . Tota? energy 103 tce/g 3442.0 3369.9 2784.3 Energy saved 1013 tce/y 0.0 73.1 657.7 xn 1990 BOTH CASES 2000 £02 103 t/q 2240.9 2193.3 1912.7 --------------------------- ----------------------------------------- 502 101%3 t/s 94.0 92.0 76.0 NM tpy percent Neu Neu pct Old total total pct FSP 10^3 t/tJ 37.9 37.0 30.7 Ingot 47.6 76.3 3.7 10 45.9 49.5 50 IF SANE PERCENT CONCASTING Concast 14.8 23.7 32.9 90 16.6 49.5 50 Cap ingot casting tN tpY 47.6 47.6 47.6 Total 62.4 100.0 36.6 62.4 99 Cap con casting NH tpy 14.9 14.9 14.9 (pig iron) (pig iron 90.0 pct of steel) Cap total fM tpy 62.4 62.4 62.4 steel 110 Energy ingot cast 10-3 tce/y 3084.0 3084.0 3094.0 Energy concestg 103 tcefy 359.0 359.0 359.0 B1W CASE 2010 total energyp IM3 tce/y 3442.0 3442.0 3442.0 - ---- EE0 32 0 7.7 Xn Neu Neu pct Old total Total pct EEOSAE lHCNST6.4 10 31.4 37.9 30 57.2 90 31.0 99.2 70 IF 5MNE PERCENT CONCRSTINO 2240.9 2240.9 57.2 0 2 1270 £02 10n3 t/y 209 24. 2240.9 (pig iron 90.0 pct of steel) Reduction in C02 1013 t/g 0.0 47.6 428.2 P r steel 140.0 Investment 101%6 R"D9012.6 7313.1 total to 2000 Invest C02 removal RB per tpy 17090 17090 xN ACCEL CASE 2010 Invest TCE saved RHB per TCE/y 11119 11119 UN --------------------------------- Neu Neu pct Old total Total pct ACCELERATED FORECAST 47.5 45.0 12.5 6.4 10 12.5 10.9 15 Cap ingot casting N tPY 4. . 49. 57.2 49.9 107.1 Coap n casting 11 tpy 62.4 62.4 62.4 63.6 62.4 126.0 Total capacity rl" tpy 246. (pig iron 90.0 pct of steel) Energy ingot cast 10"3 tce/9 3094.0 2967.4 909.9 steel 140.0 Energy con cast 10n3 tceefl 359.0 401.6 1207.1 fnergy соп сет! 10^Э !се/у Э58.0 401.6 1207.! Гоlл! energy 10^Э !се/у Э442.0 ЭЭЬВ.9 2017.0 Епегgу seved 10^Э !се/у -- 7Э.1 1425.1 хх С02 10^Э !/у 2240.9 219Э.Э 1313.2 502 10^Э lfy 94.0 92.0 55.1 Г5Р 10^Э t/у Э7.8 Э7.0 22.Э IF 5R„Е PERCENT [ONCA5TIN0 Сер inqo! cesting Нд !ру 47.6 47.6 47.6 Сер соп cesling „„ tpy 14.8 14.8 14.В Сер tolеl НИ !ру 62.4 62.4 62.4 Energy iпgo! ces! 10^Э !се/у Э094.0 Э094.0 ЭОВ4.0 Energy conceslq 10^Э !се/у Э58.0 Э58.0 Э59.0 Гоlл1 energy 10^Э !се/у Э442.0 Э442.0 3442.0 ENEROY 5AVE0 ЧIГН СОИСдSТ 0.0 7Э.1 1425.1 хх IF SдИЕ PERCENf CONCR5fIN0 С02 10^Э !/у 2240.9 2240.9 2240.9 Reduclion in С02 10^Э t/у 0.0 47.6 927.7 хх lпvетtмеп! 10^6 R„В 812.6 15845.1 !оlеl to 2000 lnves! С02 renovel RHB рег !ру 170В0 17080 хх lnves! ТСЕ seved R„В ргг ТСЕ/у 11119 11119 хх CRSE STUDY RNRLYSIS NUMBER H3 Reheat Furnace Renovation -------------------------------------------------------------------------------- ---------------------------------------- Without With project project old furnace (renovated) NOTES Net energy use kgCE/t, 101 90 1 Capacity For rolling is in excess of 50 mm C02 emission kg/t 65.30 58.20 Epy and there are about 480 furnaces of al I S02 emission kg/t, 2.74 2.44 types installed. say 370 need attention. TSP emission kg/L 1.02 0.91 2 It is assumed all these will be renovated Investment for CS 10^6 PH13 0.000 0.282 and upgraded by 2010. Capacity for CS million TPY 0.120 0.132 3 For BRU. it is assumed that renovation will Investment per TPY RKB/Lpy renoy.Furneces 2 take about 12 years from 1990 at a rate of Present capacity 10^6 TPY 50 old rolling oil is about 30-40 furnaces per year. 4 For nCCEL case. it is assumed all renovation Calculated -- financial -- IRR 36.7 percent completed by 20M. Calculated payback inc construction time - I year BRU FORECRST 1990 2000 2010 Capacity old fur 10^6 tpy 50.0 8.3 0.0 Capacity renov. 10^6 tpy 0.0 41.7 50.0 Energy old fu- IOA3 tce/yr- 5045.0 837.5 0.0 Energy renov. 10^3 Lee/yr 0.0 3748.8 4495.0 Total energy IOA3 tce/yr 5045.0 4586.3 4495.0 Energy saved 10"-3 tce/yr 0.0 4S8.7 550.0 wn C02 WAS t/y 3265.0 2969.9 2910.0 S02 10-",3 t/y 137.0 .124.5 122.0 TSP 10^3 t/y 51.0 46.4 45.5 C02 removal IDA3 t/y 296*1 355.0 Investment WAS RMB 89:1 IC6.8 Invest C02 removal RM per Lpy 301 301 UM Invest TCE saved RMB per TCE/y 194 194 RCCELERRTEO FORECRST Capacity old fur WAS tpy 50.0 0-0 0.0 Capacity renov. 10^6 tpy 0.0 50.0 50.0 Energy old fur IOA3 tce/yr 5045.0 0.0 0.0 Energy renov. IOA3 tce/yr 0.0 4495.0 4495.0 Total energy IO-'L3 tce/yr 5045.0 4495.0 4495.0 Energy saved 100-3 tce/yr 0.0 550.0 550.0 vim C02 10-3 t/y 3265.0 2910.0 2910.0 S02 10-'1-3 t/y 137.0 122.0 122.0 TSP JOAS t/y 51.0 45.5 45.5 C02 removal IDA3 t/y 355.0 355.0 Investment 10^6 R"B 106.8 106.8 Invest C02 removal RHO per Epy 301 301 Invest TCE saved RMB per TCE/y 194 194 NX CASE STUDY ANALYSIS NUMBER M4 OF gas recovery For steam/elec. generation Without With project project no recovery OF gas recovered NOTES Net energy use kgCE/t 108.6 59.3 I Example plant (Xingtai) produces about 500,000 tpy pig iron. It is assumed there CO2 emission kg/L 70.7 31.2 are about 25 such plants, total capacity say 502 emission kg/t 3.0 0.2 10 MM tpy, suitable For gas recovery system. TSP emission kg/t 1.2 0.4 2 For BRU, assume 60% installed by 2000. For Investment for CS 10^6 RMO 0 17.45 RCCEL case, 80X: all completed by 2010. Capacity For CS IA6 TPY 0 0.505 pig iron output Investment per TPY RHB/tpy OF 34.55 Present capacity 10^6 TPY 10 mm tpy pig iron, no recovery Calculated -- financial -- IRR 28.2 percent Calculated payback inc construction time 7 years 1990 2000 2010 BRU FORECAST Capacity no rec 1OAS TPY 10.0 4.0 0.0 Capacity with rec 10^6 TPY 0.0 6.0 10.0 Energy no rec 10A3 tee/yr 1086.0 434.4 0.0 Energy with rec 10^3 tce/yr 0.0 355.8 593.0 Total energy 10A3 tEce/yr 1086.0 790.2 593.0 Energy saved 10A3 tee/yr 0.0 295.9 493.0 mi C02 10^3 t/y 707.0 470.0 312.0 S02 AS t/y 29.7 13.2 2.2 TSP IDA3 t/y 12.0 7.3 4.2 C02 removal 10^3 t/y 237.0 395.0 MM Investment 1OA6 RHB 207.3 345.5 Invest C02 removal RHB per L/y 875 075 ww Invest TCE saved RHO per TCE/y 701 701 MM RCCELERATED FORECRST Capacity no rec 10^6 TPY 10.0 2.0 0.0 Capacity uith ree 10^6 TPY 0.0 0.0 10.0 Energy no rec 10A3 tee/yr 1086.0 217.2 0.0 Energy with rec 10^3 tee/yr 0.0 474.4 593.0 Total energy 10^3 tce/yr 1066.0 691.6 593.0 Energy saved IDA3 tce/yr 0.0 394.4 493.0 wx C02 10,"3 t/y 707.0 391.0 312.0 502 10A3 L/y 29.7 7.7 2.2 TSP 10A3 t/y 12.0 5.0 4.2 C02 removal I0A3 t/y 316.0 395.0 MM Investment 10A6 RHO 276.4 345.5 Invest C02 removal RM per t/y 975 975 MM Invest TCE saved RMS per TCE/y 701 701 CASE STUDY RNRLYSIS NUMBER M5 Aluminium plant renovation Without With project project old equipmt new equipmt NOTES Net energy use kgCE/t 2023.78 1858.97 1 There are 16 other similar plants to the CO2 emission kg/6. 1121.6 1039.2 Shandong works used for the case study, 502 emission kg/t. 451.6 42 total alumina capacity about 6 mm tpy. SD2 emission kcg/L 45.8 42.7 TSP emission kg/t 20.4 19.0 2 For BRU, assume one third -- about 5-6 plants -- renovated by 2000, For ACCEL case Investment 10A6 RH 0 80.74 assume at least half, say 9 plants. Capacity 10^6 TPY 0.470 0.500 Investment per TPY RMO/tpy new equipment 161.480 3 By 2010, assume all conversions are complete. Present capacity 10^6 TPY 6 Final capacity 10^6 TPY 0 Calculated -- Financial -- IRR 84.3 percent Calculated payback inc construction time 3 years BRU FORECRST 1990 2000 2010 Capacity old 10^6 TPY 6.0 4.0 0.0 Capacity neu 10^5 TPY 0.0 2.0 6.0 Energy OH 10^3 tee/yr 12142.7 8095.1 0.0 Energy a0F 10A3 tce/yr 0.0 3717.9 11153.8 Total energy 10^3 tce/yr 12142.7 11613.1 11153.9 Energy saved 10^3 tce/yr 0.0 329.6 989.9 MN C02 10A3 t/y 6729.5 6562.8 6229.4 S02 10^3 t/y 275.0 266.6 256.3 TSP 10^3 t/y 122.1 119.5 114.2 CO2 removal 10^3 t/y 166.7 500.1 M Investment 10^6 RK 323.0 969.9 Invest C02 removal RMB per t/y 1937 1937 M Invest TCE saved RMB per TCE/y 980 980 MM RCCELERATED FORECAST Capacity OH 10^6 TPY 6.0 3.0 0.0 Capacity BOF 10^6 TPY 0.0 3.0 6.0 Energy OH 10^3 tce/yr 12142.7 6071.3 0.0 Energy BOF I0^3 tce/yr 0.0 5576.9 11153.6 Total energy 10A3 tee/yr 12142.7 11646.3 11153.6 Energy saved t03 tce/yr 6 0.0 494.4 986.9 MN C02 10A3 t/y 6729.5 6479.4 6229.4 502 10A3 t/y 275.0 265.7 256.3 TSP 10A3 t/y 122.1 Il.3 114.2 C02 removal 10^3 t/9 250.0 500.1 M Investment 10^6 RHB 484.4 96.9 Invest C02 removal RMB per t/y 1937 1937 M Invest TCE saved RMO per TCE/y 980 980 CASE STUDY ANRLYSIS NUMBER a1 Replace old dry kilns by preheater/precalciner systems Without With project project old plant new plant NOTES Net energy use kgCE/L 286 161 1 Original capacity of long dry kilns with CI02 emission kg/t 199.32 107.75 waste heat boilers is assumed to be 3Z of 502 emission kg/L 289.32 1.5 say 200 million tpy cement capacity, about 6 502 emission kg/t 2.32 1.69 mm Epy. TSP emission kg/t 21.43 2.82 pvstmntorCPY bG R9 040 4077 cemen2 For BRU case, assume haF the ki I ns are Invetmet Fo CS 10^6RHB0 45.99renovated by 2000 -- this represents about5 Capacity for rs 10A6 tpy 0.409 0.746 cement or 6 plants. Balance completed by 2010. Investment pf-r- 7PY RHB/Epy 614 Present capacity o^6 tpy 5 3 For RCCEL case, it is assumed all kilns converted by 2000 (say 10-12 production lines). Calculated -- Financial -- IRR 16.9 percent Calculated payback inc construction time 11 years BRU FORECRST 1990 2000 2010 Capacity old ID^$ tpy 6.0 3.0 0.0 Capacity new 0A6 tpy 0.0 3.0 6.0 Energy old 103 tee/yr 1716.3 959.2 0.0 Energy new 10A tee/yr 0.0 482.2 964.4 Total energy 10A3 tee/yr 1716.3 1340.4 964.4 Energy saved 10^3 tee/yr 0.0 375.9 751.9 un C02 10A3 t/y 1135.9 891.2 646.5 S02 10^3 t/y 13.9 12.0 10.1 TSP 10A3 t/y 128.6 72.0 16.9 C02 removal 10A3 tpy 244.7 489.4 MM Investment 1OA6 RMB 1941.9 3663.6 Invest C02 removal RM per t/y 7526 7526 K" Invest TCE saved RMB per TCE/y 4899 4899 mm ACCELERATED FORECAST Capacity old IOA6 Epy 6.0 0.0 0.0 Capacity new 1OA6 tpy 0.0 6.0 6.0 Energy old 10^3 tee/yr 1716.3 0.0 0.0 Energ new 10A3 tee/yr 0.0 964.4 964.4 Total energy 0A3 tce/yr 1716.3 964.4 964.4 Energy saved 10^3 tce/yr 0.0 751.9 751.9 MM C02 1OA3 t/y 1135.9 646.5 646.5 502 10A3 t/y 13.9 10.1 10.1 TSP 10A3 t/y 128.6 16.9 16.9 C02 removal I0A3 tpy 489.4 489.4 mm Investment IOA6 RHO 3693.6 3693.6 Invest C02 removal RHO per t/y 7526 7526 MM Invest TCE saved RHO per TCE/y 4899 4099 MM CASE STUDY RNRLYSIS NUMBER 62 Wet to dry conversion Scenario I with wet grinding, dry kiln Without With project project wet process dry process NOTES Net energy use kgCE/t 246 170 1 Met process capacity is about 11% of 200 C02 emission kg/6 164.29 113.39 million tpy, say 22 mm Epy. S02 emission kg/L 6.67 4.51 2 It is assumed that no conversions will be TSP emission kg/t 3.59 2.72 completed before 2000 but about half this capacity will be converted by 2010 under the Investment For CS 10^6 RMS 0 130 BRU case. This means about 40-50 kilns. Capacity For CS 10^6 tpy 0.196 0.433 Investment per TPY Y/tpy 300 3 It is assumed that all kiins -- say 100 -- Present capacity 10^6 tpy 22 could be converted by 2010 under the RCCEL case. Calculated -- Financial -- IRR 19.2 percent Calculated payback inc construction time 10 years BRU FORECRST 1990 2000 2010 Capacity old wet 10A6 tpy 22.0 22.0 11.0 Capacity neu dry 1OA6 tpy 0.0 0.0 11.0 Energy old wet 10^'3 tce/yr 5460.8 5460.8 2730.4 Energy new dry 10^3 tee/yr 0.0 0.0 1865.3 Total energy 10'3 tce/yr 5460.8 5460.8 4595.7 Energy saved 10^s tce/yr 0.0 .0 865.1 MN C02 10^ t/y 3614.4 3614.4 3054.5 S02 10'3 t/y 146.7 146.7 123.0 TSP 10^3 t/y 79.0 79.0 69.4 C02 removal 103 t/y .0 559.9 Investment 10^6 RMS 0.0 3301.0 Invest C02 removal RMB per t/y 0 5996 wN Invest TCE saved RMB per TCE/y 0 3916 " ACCELERRTED FORECRST Capacity old wet IDA6 tpy 22.0 22.0 0.0 Capacity new dry 10^6 tpy 0.0 0.0 22.0 Energy old wet 10A3 tce/yr 5460.9 5460.8 0.0 Energy new dry 10*3 tce/gr 0.0 0.0 3730.5 Total energy lOA tee/yr 5460.9 5460.9 3730.5 Energy saved 10^3 tee/yr 0.0 .0 1730.3 NM C02 10A,3 t/y 3614.4 3614.4 2494.6 S02 10^3 t/ 146.7 146.7 99.2 TSP 10^3 t/y 79.0 79.0 59.9 C02 removal 1OA t/y .0 1119.0 Investment 1OA6 RMB 0.0 6602.0 Invest C02 removal RMS per t/Y 0 5996 N Invest TCE saved RMS per TCE/y 0 3816 CASE STUDY RNRLYSIS NUMBER 83 Vertical shaft kiln renovation without With project project old plant new plant NOTES Net energy use kgCE/L 189 127 1 Shaft kilns represent about 150 mm tpy cement capacity, many being quite small. C02 emission kg/t 110.90 00.54 Many are very old and use outdated 502 emission kg/t 4.49 3.22 equipment. TSP emission kg/t 2.50 1.91 2 It is assumed that about one third, say 50 Investment for CS 10A6 RM 0 26.7 mm tpy capacity, represents kilns that are Capacity for CS 10^6 Epy 0.510 0.650 worth renovating -- many will be too old to Investment per TPY RMO/tpy 41 upgrade and may well be replaced by new Present capacity 10^6 tpy 50 plants. 3 For the BAU case, it is assumed that up to one quarter could be renovated by 2000 and Calculated -- financial -- IRR 32.3 percent the balance by 2010. This represents about Calculated payback ine construction time 7 years 25 plants by 2000 and the full 100 or so by 2010. BAU FORECAST 1990 2000 2010 Capacity old 1A06 tpy 50.0 37.5 0.0 4 In the RCCEL case, the renovation of 35X by Capacity renov. 1OA6 tpy 0.0 12.5 50.0 2000 is assumed -- 30-40 plants -- and the balance by 2010. Energy old 10A tce/yr 9444 7093 0 Energy renov. 10A3 tce/yr 0 1585 6341 Total energy 10^3 tee/yr 9444 8668 6341 Energy saved 10A3 tee/yr 0 776 3103 mm C02 10A3 t/y 5545 5166 4027 S02 10^3 t/y 224 200 161 TSP 10A3 t/y 125 119 96 C02 removal 10A3 t/y 380 1510 ww Investment 10^6 RHO 513 2053 Invest C02 removal RH per t/y 1352.5 1352.5 MM Invest TCE saved RH9 per TCE/y 661.6 661.6 MM RCCELERATED FORECAST Capacity old 10A6 tpy 50.0 32.5 0.0 Capacity renov. 1OAS tpy 0.0 17.5 50.0 Energy old 10^3 tce/yr 9444 .6139 0 Energy renov. 10A3 tee/yr 0 2219 6341 Total energy 10A3 tce/yr 9444 80357 6341 Energy saved JDA3 tee/yr 0 1086 3103 x" C02 10A 3 t/y 5545 5014 4027 S02 10A3 L/y 224 202 161 TSP 10A3 t/y 125 115 96 C02 removal 10A3 t/y 731 1519 Investment 0A6 RMO 739 2053 Invest C02 removal RMO per t/y 1352.5 1352.5 M Invest TCE saved RMO per TCE/y 661.6 661.6 CASE STUDY ANRLYSIS NUMBER Ll Black liquor recovery Without With project project with BL recovery NOTES Net energy use lgCE/'t 532 348 1 The situation with respect to caustic C02 emission kg/6 1054.70 422.35 recovery (black liquor recovery) may be 502 emission kg/t 6.52 e.47 summarised as Follows: TSP emission kg/L 11.31 2.17 9ood base Strat Total Investment For CS 10^6 RMB 0 11.32 nith rec. 800 400 1200 Capacity Fop CS D0s tpy 0.017 0.017 no rec. 100 1600 1700 Investment per TPY QHB/tpy 666 900 2000 2900 Present capacity 106 tpy 1.2 All Figures refer to 10^3 tpy pulping capacit without bI recovery 2 OF the 1700 without recovery, systems For 500 are under construction. The potential is Calculated -- financial -- IRR 24.5 percent thus 1200d000 tpy. Calculated payback inc construction time 9 years 3 For the BRU case, it is assumed that all BRU FORECAST 1990 2000 2010 plants will be Fitted with black liquor Capacity no rec 1AS tPy 1.2 0.6 0.0 recovery systems by 2010 but only one third Capacity with rec 10^6 Epy 0.0 0.4 1.2 -- say 20 plants -- by 2000. Energy no rec 10^3 tce1/r 638.4 425.6 0.0 4 For the RCCEL case, half -- say 30 plants -- Energy with ree 10^3 tce/yr 0.0 139.2 417.6 will be Fitted with BL recovery by 2000. Total energy 10^3 tce/yr 638.4 564.9 417.6 Energy saved 10^3 tee/yr 0.0 73.6 220.9 wn 5 It is assumed that all new pulping plants C02 10^3 t/y 1265.6 1012.7 506.9 will automatically have BL recovery 502 10^3 t/y 7.9 9.6 10.2 Facilities built into the design. TSP 10^3 t/y 13.6 9.9 2.6 6 Energy use and emission Factors estimated as C02 removal 10*3 6/y 252.9 759.9 MM Follous: Investment 10^6 RHO 266.4 799.1 without with Invest C02 removal RHO per t/y 1053 1053 wx project project Invest TCE saved RHO per TCE/y 3619 3619 UK Net energy use 9043.13 5919.54 TCE/y- C02 17930 7180 tpy ACCELERATED FORECAST S02 110.90 144.00 tpy Capacity no rec 10^6 tpy 1.2 0.6 0.0 TSP 192.25 36.91 tpy Capacity with rec 10^6 tpy 0.0 0.6 1.2 To relate these to pulp produced, each Energy no rec 10^3 tce/yr 639.4 319.2 0.0 Figure was divided by 17000 -- the pulp Energy with rec 10^3 tce/yr 0.0 208.8 417.6 production in tpy For the case study plant, Total energy 10^3 tce/yr 638.4 528.0 417.6 Bostenghu Paper Hill, Kulle City, Xinjiang Energy saved 10-3 tce/yr 0.0 110.4 220.9 MM Autonomous Region. C02 10^3 t/y 1265.6 886.2 506.9 S02 10^3 L/y 7.9 9.0 10.2 TSP 10^3 t/y 13.6 8.1 2.6 C02 removal 10^3 t/y 379.4 759.9 MM Investment 10^6 RHO 399.5 799.1 Invest C02 removal RHO per t/y 1053 1053 ww Invest TCE saved RHO per TCE/y 3619 3619 uw nDM usuur HNHLYSI5 NUMBER L2 Cogeneration in paper Aill Without with project project with cogen NOTES Net energy use kgCE/t 2094 1691 1 OF the 5000+ paper plants in China, only 60 or so have their own power plant. It is CO2 emission kg/t 1363.4 1101.0 estimated that 60 new mills could install 300 S02 emission kg/t 67.0 54.1 MW generating capacity (cogeneration), TSP emission kg/L 0.0 0.0 average size say 4 MW. Investment For CS IO^ RM 0 46.52 2 Based on 80 mills of average size 30,000 Epy Capacity For CS 10^6 tpy 0.083 0.083 paper products -- which corresponds Investment per TPY RMS per Epy 595 approximately to 4 MW electrical load -- the Present capacity IOA6 tpy 2.4 capacity of mills with the potential to with no cogeneration install cogeneration is estimated to be 2.4 mm tpy paper. Calculated -- Financial -- IPQ 24.6 percent 3 It is assumed that all these mills will have Calculated payback inc construction time 5 years Installed such systems by 2010 and that all new mills of comparable size will install BRU FORECRST 1990 2000 2010 cogeneration. Capacity no cogen 10^6 tpy 2.4 1.9 0.0 Capacity with cog IOA6 tpy 0.0 0.5 2.4 4 For the BRU case, it is assumed that 15 to 20 mills will have installed cogeneration by Energy no cogen 10A3 Ece/yr 5025.6 3978.6 0.0 2000, representing say 0.5 mm tpy capacity. Energy with cogen 10A3 teeyr 0.0 945.5 4059.4 Total energy 1D^3 tce/yr 5025.6 4924.1 4059.4 5 For the ACCEL case, it is assumed 30-35 Energy saved 10^3 tce/yr 0.0 201.5 967.2 NM mills will have installed cogeneration by C02 10A3 t/y 3272.2 3141.0 2642.4 2000, a capacity of I mm tpy paper. 502 10A3 L/y 160.9 154.4 129.9 TSP I0^3 t/y 0.0 0.0 0.0 6 Energy and emissions Factors derived as Follows: C02 removal 10^3 t/y 131.2 629.9 MM without with Investment IOA6 RMB 292.3 1403.0 project project Invest C02 removal RH per tpy 2220 2229 wx Energym TCE/yr 173625 140345 Invest TCE saved RuS per TCE/y 1451 1451 MM C02 tpy 113160 91365 502 tpy 5562 4491 RCCELERATED FORECAST Capacity no cogen IDA6 tpy 2.4 1.4 0.0 To relate these to paper production, these Capacity With cog 10A6 tpy 0.0 1.0 2.4 Figures were divided by 83000, the paper output in Epy of the case study plant, Energy no cogen 10A3 tCe/yr 5025.6 2931.6 0.0 Yalujiang Paper Hill, Dandong City, Liaoning Energy with cogen 10^3 tce/yr 0.0 1691.0 4058.4 Province. Total energy 10A3 tee/yr 5025.6 4622.6 4058.4 " Note that the energy and emissions Energy saved 20^3 tce/yr 0.0 403.0 967.2 M associated with the electricity export From C02 10A3 t/y 3272.2 3009.9 2642.4 the cogeneration system are included as 502 10A3 t/y 160.8 147.9 129.8 energy and emissions For the "without" case, TSP 10^3 t/ 0.0 0.0 0.0 as the electricity would have been generated elsewhere. C0 rmoalIOA3 t/y 262.4 629.90M investment 106 RMO 59426 22238 Invest C02 removal RH per tpy 1451 1451 MM Invest TCE saved RH per TCE/y CASE STUDY RNRLYSIS NUMBER TI Cogeneration in textile mill Without with project project no cogen with cogen NOTES Net energy use kgCE/mm H 375600 315000 1 The example plant chosen for the case study analysis produces about 60 million meters C02 emission kg/mm H 245600 201485 per year of fabric and there are about 500 S02 emission kg/mm H 10209 8738 similar plants. This represents a capacity TSP emission kg/mm H 4768 2960 of 30,000 million m/y. Investment For CS 10^6 RM 0 7.13 incremental 2 For the BRU case, it is assumed that about Capacity for CS 10^6 H/y 60.0 60.0 80 plants (capacity 4,800 million m/y) will Investment per M RMB per H/y 0.119 have installed cogeneration by 2000 and 400 Present capacity I06 H/y 30000 plants (24,000 mm m/y or 80% of the potential) by 2010. 3 For the ACCEL case, 120 plants are assumed Calculated -- financial -- IRR 37.6 percent to have cogeneration by 2000 (7.200 mm m/y Calculated payback inc construction time 6 years or 24%) and 90% by 2010 (27,000 mm m/y). BRU FORECAST 1990 2000 2010 4 Energy and emission factors were derived Capacity no cogen 10^6 M/y 30000 25200 -6000 from the case study data as follows: Cap. with cogen IA H/y 0 4800 24000 without uith Energy no cogen 10A3 tce/yr 11268.0 9465.1 2253.6 project project Energy with cogen 10^3 tee/yr 0.0 1512.0 7560.0 Energy TCE/yr 22534 18902 Total energy 10A3 tce/yr 11268.0 10977.1 9913.6 C02 tpy 14739 12089 Energy saved 1O^3 tee/yr 0.0 290.9 1454.4 MM 502 tpy 613 524 002 IOA3 t/ 7368.0 7156.2 6309.2 TSP tpy 286 178 S02 10^3 t/y 306.3 299.2 271.0 TSP 10^3 t/y 143.0 134.4 99.6 These figures were then divided by 60 million metres, the annual output of the C02 removal 1OA3 t/y 211.9 1058.8 us case study pInt (Yangzhou Dyeing and Investment 10^6 RMB 570.4 2852.0 Printing Hill, Jiangsu Province) in order to Invest C02 removal RHO per tpy 2694 2694 K" relate changes in energy and emissions to Invest TCE saved RM per TCE/y 1961 1961 MM textile production for sector aggregation purposes. F1CCELERATED FORECAST Capacity no cogen 10^6 M/y 30000 22800 3000 Cap. with cogen 10^6 M/y 0 7200 27000 Energy no cogen 10A3 tee/yr 11268.0 9563.7 1126. Energy with cogen 10^3 tee/yr 0.0 2269.0 6505.0 Total energy 10A3 tce/yr 11269.0 10831.7 9631.6 Energy saved 10"%3 tce/yr 0.0 436.3 1636.2 M C02 lO*%3 t/y 7368.0 7050.4 6176.9 502 10A3 t/y 306.3 295.7 266.6 TSP 10A3 t/y 143.0 130.0 94.2 C02 removal 10A3 t/y 317.6 1191.1 M Invetmova 1OA RHO 855.6 3206.5 Investment 106R92694 2694 "m Invest C02 removal RHO per tpy 2694 191 MM Invest TCE saved RHD per TCE/y 1961 1961 CASE STUDY ANALYSIS NUMBER T2 NaOH recovery, textiles sector Without with project project no recovery with recov NOTES Net energy use kgCE/L 42974 32835 1 As for case study TI, the estimated capacity of plants without caustic soda recovery is C02 emission kg/mm metre 28004 21546 (500 x 60) or 30,000 million m/y. 502 emission kg/mm metre 0 4 TSP emission kg/mm metre 336 259 2 For the BRU case, about 60 plants are assumed able to install recovery systems by Investment for CS IA6 RHB 0 2.01 .2000 (capacity 5,000 mm m/y) and 450 plants. Capacity for CS 106 m/y 60.0 60.0 say 90%, by 2010 (capacity 27,000 mm m/y). Investment per TPY RHO per m/y 0.034 Present capacity 10A6 m/y 30000 3 For the nCCEL case, 150 plants are assumed to install recovery systems by 2000 (capacity 9000 mm m/y) and all plants, about Calculated -- financial -- IRR 57.9 percent 500, by 2010. Calculated payback inc construction time 3 years 4 For the case study at Yangzhou Dyeing and Printing Mill, the incremental investment BRU FORECAST 1990 2000 2010 was 2.01 million RMB, the difference between Capacity no roe 10^6 m/y 30000 25000 3000 the new investment of 3.89 mm and the amount Capacity with ree 10^6 m/y 0 5000 27000 needed to keep the old system operating (1.86 million for Lanks, controls, etc). Energy no rec 10A3 tee/yr 1289.2 1074.4 128.9 Energy with rec 10^3 tee/yr 0.0 164.2 966.5 S Energy and emissions factors were derived as Total energy 10^A tee/yr 1289.2 1238.5 1015.5 follows: Energy saved 10^3 tCe/yr 0.0 50.7 273.0 MM without with C02 10A3 t/y 840.1 807.8 665.8 project project S02 IO3 t/y. 0.0 .0 0.1 Energy TCE/yr TSP 1O3 t/y 10.1 9.7 9.0 in plant 25.41 1002.02 for caustic 2553.04 967.26 C02 removal 10^3 t/y 32.3 174.4 xx total 2576.45 1970.08 Investment 10^A6 RMO 167.5 904.5 Invest C02 removal RH per t/y 5187 5167 C02 tpy 1680.25 1292.78 Invest TCE saved RMS per TCE/y 3304 3304 MM 502 tpy 0.00 0.23 TSP Epy 20.16 15.51 ACCELERATED FORECRST Capacity no rec 10^6 m/y 30000 21000 0 These figures were divided by 60 million Capacity with rec 10^6 m/y 0 9000 30000 metres, the annual output of the Yangzhou plant, to relate changes in energy use and Energy no rec 10^3 tee/yr 1289.2 902.5 0.0 emissions to textile production. Energy with ree 10^3 tee/yr 0.0 295.5 965.1 Total energy 10^3 tee/yr 1289.2 1196.0 985.1 Energy saved- 10AS tee/yr 0.0 91.3 304.2 mm C02 WAS3 t/y 840.1 792.0 646.4 502 10^3 t/y 0.0 .0 0.1 TSP 10^3 t/y 10.1 9.4 7.6 C02 removal J0A3 t/y 58.1 193.7 Mm Investment IOA6 RHB 301.5 1005.0 Invest C02 removal RHB per t/y 5107 5187 xx Invest TCE saved RMB per TCE/y 3304 3304 Nm CASE STUDY ANRLYSIS NUMBER T3 Energy management without with project project computerised NOTES Net energy use kgCE/mm m 70697 63618 1 It is assumed that about 1OX of energy can C02 emission kg/mm metre 46917 42225 be saved by computerising the production 502 emission kg/mm metre 1995 1706 systems and adding new meters. TSP emission kg/mm metre 1053 948 Investment for CS 1OA6 RH 0 1.5 Capacity For CS 10^6 m/y 60.0 60.0 Investment per TPY RMO per m/y 0.025 Present capacity 10^6 m/y 30000 BRU FORECRST 1990 2000 2010 Capacity existing 1OA6 m/y 30000 22500 0 Capacity computer.IOA6 m/y 0 7500 30000 Energy existing 10A3 tce/yr 2120.6 1590.5 0.0 Energy computer. 10^3 tee/yr 0.0 477.1 1908.5 Total energy 10A3 tee/yr 2120.6 2067.6 1908.5 Energy saved 10^3 tee/yr 0.0 53.0 212.1 um CO2 10^3 t/y 1407.5 1372.3 1266.9 502 10A3 t/y 56.9 55.4 51.2 TSP 10A3 t/y 31.6 30.9 28.4 C02 removal ID^3 t/y 35.2 140.9 N Investment 10^6 RHO 187.5 750.0 Invest C02 removal RHO per t/y 5329 5328 N Invest TCE saved RHO per TCE/y 3537 3537 Nm RCCELERATED FORECAST Capacity existing 106 m/y 30000 19000 0 Capacity computer. 10A6 m/y 0 12000 30000 Energy existing 10^3 tee/yr 2120.6 1272.4 0.0 Energy computer. 10^3 tee/yr 0.0 763.4 1908.5 Total energy 10A3 tee/yr 2120.6 2035.9 1909.5 Energy saved 10^3 tee/yr 0.0 94.9 212.1 Nx C02 10^3 t/y 1407.5 1351.2 1266.9 502 1D3 t/y 56.9 54.6 51.2 TSP 10^3 t/y 31.6 30.3 28.4 C02 removal 10^3 t/y 56.3 140.8 N Investment 10^6 RHO 300.0 750.0 Invest C02 removal RHO per t/Y 5329 5329 N Invest TCE saved RH9 per TCE/y 3537 3537 M CASE STUDY ANALYSIS NUMBER CHI Medium size ammonia renovation Without With project project (old plants) (renovated) NOTES Net energy use kgCE/t 2135 1723 1 There are about 56 medium size plants, CD2 emission kg/t 1437.20 1126. ypical capacity 60,000 tpy ammonia, OF C02 misionkg/ 143.20 112.06which 34 use coal and the others oil/gas. S02 emission kg/t 56.50 46.88 TSP emission kg/t 36.35 21.66 2 The 34 plants represent up to 3 mm tpy capacity but perhaps halF will not be Investment For CS 1OA6 RMB 0 370.69 renovated -- rather, new plants will be Capacity For CS 1OA6 Epy 0.000 0.180 built, much larger, to replace them. Assume Investment per TPY RMB/tpy 2059 therefore that the realistic maximum Present capacity 106 tpy 1.5 capacity For renovation is 1.5 mm tpy (say 15 to 20 plants). 3 For the BAU case, assume no plants at all Calculated -- Financial -- IRR 19.5 percent will be renovated -- IRR not very attractive. Calculated payback inc construction time 10 years 4 For the ACCEL case, assume up to 20X oF BRU FORECAST 1990 2000 2010 capacity renovated by 2000, say 4-5 plants. Capacity old 10^6 tpy 1.5 1.5 1.5 and up to 6OX by 2010 (10-12 plants). Capacity renov. 10^6 tpy 0.0 0.0 0.0 Energy old 10^3 tee/yr 3203.1 3203.1 3203.1 Energy renov. I0^3 tce/yr 0.0 0.0 0.0 Total energy 10^3 tee/yr 3203.1 3203.1 3203.1 Energy saved 10A3 tee/yr 0.0 .0 .0 MM C02 10^3 t/y 2155.9 2155.0 2155.9 S02 10A3 /y 94.0 94.9 84.6 TSP 10^*3 t/y 54.5 54.5 54.5 C02 removal 10^3 t/y .0 .0 u= Investment 10^6 RMS .0 0.0 Invest C02 removal RMS per t/y 0 0 MM Invest TCE saved RMS per TCE/y 0 0 MM RCCELERATED FORECRST Capacity old 10^6 tpy 1.5 1.2 0.6 Capacity renov. 10^6 tpy 0.0 0.3 0.9 Energy old 1O^3 tee/yr 3203.1 2562.5 1261.2 Energy renov. 10^3 tee/yr 0.0 , 516.9 1550.6 Total energy 10A3 tee/yr 3203.1 3079.4 2832.0 Energy saved I0 3 tce/yr 0.0 123.7 371.0 MM C02 I0A 3 t/y 2155.8 2062.5 1875.6 502 10^3 t/y 94.8 01.9 76.1 TSP 10^3 t/y 54.5 50.1 41.3 C02 removal 10^3 t/y 93.3 20.0 Investment 10^6 RM9 617.9 1653.5 Invest C02 removal RMB per t/y 6619 6619 MM Invest TCE saved RMB per TCE/y 4995 4995 CASE STUDY RNRLYSIS NUMBER CH2 Small ammonia renovation and waste heat recovery Without With project project old plant with WHR NOTES Net energy use kgCE/L 2175 1899 I Production by small plants (under 45,000 tpy ammonia) represents over half of national C02 emission kg/L 1451.15 1271.03 ammonia production. Over 1000 such 502 emission kg/t 58.05 50.52emnaiedco90vslOschi. TSP emission kg/t 34.10 30.70 p over 900 using anthracite. 2 Ammonia production by such small plants is Investment for CS IA6 RHO 0 3.01 thus about It mm tpy. Not all plants will be Capacity for'CS 10^6 tpy 0.017 0.019 ammonia suitable for renovation -- many are likely Investment per TPY RMB/tpy 159 to be replaced by new large scale plants. Present capacity 10'6 tpy 7.5 Assume therefore that about two thirds of capacity -- 7.5 mm tpU -- is the full potential. Calculated -- financial -- IRR 71.4 percent 3 For BRU case, assume about 100 plants Calculated payback Inc construction time 3 years renovated by 2000, while 200 or more are renovated under the RCCEL case. BRIJ FORECRST 1990 2000 2010 Capacity old 10^6 tpy 7.5 6.0 0.0 4 By 2010, assume all plants renovated -- Capacity renov. 10G Epy 0.0 1.5 7.5 about 500 in total. Energy old I0^3 tCe/yr 16314.0 13051.2 0.0 Energy renov. 10^3 tee/yr 0.0 2849.7 14243.6 Total energy 10^3 tee/yr 16314.0 15999.9 14243.6 Energy saved 10^3 tCe/yr 0.0 414.1 2070.4 wn C12 1O^3 t/y 10983.6 10613.4 9532.7 S02 10^3 t/y 435.4 424.1 378.9 TSP 10A3 t/y 255.0 250.7 230.3 C02 removal 10^3 t/y 270.2 1350.9 Nw Investment 10^6 RO 237.6 1189.2 Invest C02 removal RMB per t/y 80 880 M" Invest TCE saved RHB per TCE/y 574 574 Mu RCCELERATED FORECRST Capacity old 10^6 Epy 7.5 4.5 0.0 Capacity renov. 10^6 tpy 0.0 3.0 7.5 Energy old IDA3 tce/yr 16314.0 9788.4 0.0 Energy renov. ID^3 tCe/yr 0.0 5697.4 14243.6 Total energy 10^3 tce/yr 16314.0 15485.0 14243.6 Energy saved 10^3 tce/yr 0.0 629.2 2070.4 mm C02 10^3 t/y 10893.6 10343.3 9532.7 502 10^3 t/y 435.4 412.0 379.9 TSP 10A3 L/y 255.9 245.6 230.3 C02 removal 10A3 t/y 540.4 1350.9 mm Investment 10^6 RHOl 475.3 1168.2 Invest C02 removal RHB per t/y 980 990 MM Invest TCE saved RHO per TCE/y 574 574 "w CASE STUDY ANnLYSIS NUMBER CH3 New membrane process at NaOH plant Without With project project old plant new membrane NOTES Net energy use kgCE/L 1899 1016 1 About 150-200 plants similar to the case study example have the potential For C02 emission kg/t 1316.22 729.14 modification to membrane technology. 502 emission kg/L 48.79 25.25 TSP emission kg/t 41.02 27.37 2 Assume 150 plants, each with capacity 20,000 tpy caustic soda. The full potential is thus Investment For CS 1OAS RHM 0 52.14 incremental 3 mm tpy. Capacity for CS 1OA6 Epy 0.020 0.020 Investment per TPY RMB/tpy 2607 3 For the BRU case, assume no modifications Present capacity 10^6 tpy 4 until after 2000, when only about 10% will be modified. 4 For the ACCEL case, assume 20% -- say 30 Calculated -- financial -- IRR 29.4 percent plants -- modified by 2000 and 5O% or say Calculated payback inc construction time 6 years 70-80 plants by 2010. BRU FORECAST 1990 2000 2010 Capacity old IOA6 tpy 3.0 3.0 2.7 Capacity new 10A Lpy 0.0 0.0 0.3 Energy old 10A3 ee/yr 5696.9 5696.9 5127.2 Energy new 10A3 tce/yr 0.0 0.0 305.4 Total energy 10A3 tee/yr 5696.9 5696.9 5432.6 Energy saved 10^3 tce/yr 0.0 .0 264.3 MM C02 10A3 t/y 3946.7 3940.7 3772.5 502 10A3 t/y 146.4 146.4 139.3 TSP 10^3 t/y 123.1 123.1 119.0 C02 removal 1A03 t/y .0 176.1 mm Investment 10^6 RMB 0.0 7e2.1 Invest CU2 removal RMB per L/y 0 4441 mm Invest TCE saved RMO per TCE/y 0 2959 MM ACCELERATED FORECAST Capacity old IA6 Epy 3.0 2.4 1.5 Capacity new IOA6 Lpy 0.0 0.6 1.5 Energy old 10A3 tee/yr 5696.9 4557.6 2848.5 Energy new I0A 3 tce/yr 0.0 610.7 1526.8 Total energy I0A 3 tee/yr 5696.9 5168.3 4375.3 Energy saved 10A3 tce/yr 0.0 528.7 1321.7 4 39 C02 J0A3 t/y 3948.7 3596.4 3068.0 S02 1A 3 t/y 146.4 132.2 111.1 TSP 10A13 L/y 123.1 114.9 102.6 C02 removal 10A3 6/y 352.2 80.6 Investment 10^6 RMB 1564.2 3910.5 Invest C02 removal RMO per t/y 4441 4441 MM Invest TCE saved RMB per TCE/y 2959 2959 CASE STUDY RNRLYSIS NUMBER El High eFFiciency motors Without With project project MOTES standard motors high eFF motors I Investment figure shown is for motor Energy savings MWh/MU installed 90 manufacture only and does not relate to the C02 emission kg/Mh 290.00 290.00 emission Factors consumers/purchasers of motors. S02 emission kg/MMh 10.00 10.00 kg;Mh 2 The case study estimates savings of 450,000 TSP emission kg/MWh 11.00 11.00 MWh for 5000 MU installed motors (90 MUh per MU). Investment for CS 10^6 RM 0 240 Capacity For CS MU manufact/yr 5000 3 Motor population is about 330,000 MU. To Investment per MW RMB per annual MU manuF. 48000 replace emisting motors with high eFFiciency Present capacity MU manuf/yr 0 0 units, it is estimated that 5000 M of new Final capacity MW manuf/yr 0 60000 motors will be needed (Directive GB 12497 on "The economic operation of 3-phase induction motors"). A Further 6500 MU will be needed Calculated -- Financial -- IRR HNxW percent for new applications. Calculated payback inc construction time XXXXX years 4 It is assumed sales of high efficiency motors will reach half the 5000 M (2-3 BRU FORECAST 1990 2000 2010 plants) under BRU conditions and the Full HE motors made MW/yr 0 2500 15000 amount if accelerated (say 5 new or renovated motor manufacturing plants). By Energy saved 10^6 kWh 0 225.0 1350.0 2010, outputs could be 3 to 5 times that eq 10^3 TCE/yr at 3200 kcal/kWh 102.9 617.1 mm amount -- to meet replacement and new C02 reduction 10^3 t/y 0 65.3 391.5 WK application demands. S02 reduction I03 t/y 0 2.3 13.5 TSP reduction 10^3 t/y 0 2.5 14.9 Investment 10^6 RMS 120.0 720.0 Invest C02 removal RMB per t/y 1939 1839 MM Invest TCE saved RHO per TCE/y 1167 1167 MM ACCELERATED FORECAST HE motors made M/yr 0 5000 25000 Energy saved 10^6 kWh 0 450.0 2250.0 eq 10A3 TCE/yr at 3200 kcal/kUh 205.7 1029.6 MM C02 reduction 10A3 t/y 0 130.5 652.5 MM 502 reduction 10A3 t/y 0 4.5 22.5 TSP reduction 10A3 t/y 0 5.0 24.0 Investment 10^6 RMB 240.0 1200.0 Invest C02 removal RHO per t/Y 1939 1639 MM Invest TCE saved RMB per TCE/y 1167 1167 MM CASE STUDY ANALYSIS NUMBER E2 Variable speed motors Without With NOTES project project standard motors var speed motors I Market for VS motors estimated at say 1500 Energy savings MWh/MW installed 540 MW for replacements and 1500 MW for new C02 emission kg/MWh 290.00 290.00 emission Factors S02 emission kg/MWh 10.00 10.00 kg/MWh 2 Investment data are For motor manufacture TSP emission kg/Mh 11.00 11.00 only, not for the users/customers. Investment For CS 10A6 RM 0 100 3 From data for Zhejiang and Shenyang motor Capacity for CS MU manufact/yr 3000 manuFacturing plants, it is estimated that Investment per MU RMB/annual MU manuFact 33333 3000 MW motor capacity needs an investment Present capacity MM manuf/yr 0 0 of 3000 million RMB (say 7-10 plants). Final capacity MW manuf/yr 0 12000 4 Total annual savings are estimated to be about 1.62 million HMh (20X savings, 4500 Calculated -- financial -- IRR xxHxxx percent hrs., load 60%) for 3000 MW installed Calculated payback ine construction time xxxmxxx years capacity. 5 It is assumed the installed capacity will BAU FORECAST 1990 2000 2010 reach 1/3 (9nU) or 1/2 (ACCEL) of the 3000 VS motors made MU/yr 0 1000 3000 MW by 2000 and the Full amount (BRU) or even 50X more (ACCEL) by 2010. Energy saved IA6 kWh 0 540.0 1620.0 eq 10^3 TCE/yr at 3200 kcal/kWh 246.9 740.6 Mm C02 reduction 10A3 t/y 0 156.6 469.8 mm S02 reduction 10A3 t/y 0 5.4 16.2 TSP reduction IDA3 t/y 0 5.9 17.9 Investment IA6 RM 33.3 100.0 Invest C02 removal RMB per t/y 213 213 MM Invest TCE saved RMB per TCE/y 135 135 MM ACCELERATED FORECAST VS motors made MW/yr 0 1500 4500 Energy saved 10^6 kWh 0 910.0 2430.0 eq OAS TCE/yr at 3200 kcal/kWh 370.3 1110.9 MM C02 reduction 10A3 t/y 0 234.9 704.7 x" 502 reduction 10A3 t/y 0 9.1 24.3 TSP reduction 10A3 t/y 0 9.9 26.7 Investment 10^6 RMB 50.0 150.0 Invest C02 removal RMB per t/y 213 213 MM Invest TCE saved RMB per TCE/y 135 135 MM CASE STUDY ANALYSIS NUMBER E3 Electric motor repair centres Without with project project ord repairs repair centre NOTES Energy savings MWh/MW rep 0 40 1 Rbout 10.000 MR motors need repair each C02 emission kg/MWh 290.00 290.00 emission factors year, of which 5,000 MNW need reuinding. 502 emission kg/HMh 10.00 10.00 kg/MHh 2 Savings estimate is based on 2% efficiency TSP emission kg/Huh 11.00 11.00 improvement: Investment For CS 106 RHO 0 7.123 4000 hrs m 0.02 m 0.6 x 5000 = 240,000 Capacity for CS MW rep/yr 0 600 load MW MWh/year Investment per MW RHO/annual MW repaired 11972 Present capacity M rep/yr 0 0 240,000 / 5000 = 46 "Wh/MW repaired Final capacity M" rep/yr 0 10000 3 Investment based on Shanghai motor plant, 1.123 million RHO for 600 MW annual repair- Calculated IRR 45 percent capacity. Calculated payback inc construction time 2 to 3 years 4 For BRU, it is assumed that 1/2 the repair capacity (4-5 plants3 are in place by 2000 BRU FORECRST 1990 2000 2010 and the Full 5000 WM by 2010. Repair capacity MW/yr 0 2500 5000 5 For RCCEL case, it is assumed 70% in place Energy saved 10^6 kWh/y 0 120.0 240.0 by 2000 and a total of 8000 HM by 2010. equiv 10^3 TCE at 3200 kcal/kWh 54.9 109.7 C02 reduction 10^3 L/y 0 34.8 69.6 502 reduction 10^3 t/y 0 1.2 2.4 TSP reduction 10A3 t/y 0 1.3 2.6 Investment million Y 29.7 59.4 Invest C02 removal RHO per t/y 953 853 Invest TCE saved RMS per TCE/y 541 541 RCCELERATED FORECAST Repair capacity MW/yr 0 3500 9000 Energy saved 10^*6 kWh/y 0 166.0 384.0 equiv 10^3 TCE at 3200 kcal/kUh 76.8 175.5 C02 reduction 10^3 t/y 0 40.7 111.4 502 reduction 10^3 t/y 0 1.7 3.6 TSP reduction 10^3 I/y 0 1.9 4.2 Investment million Y 41.6 95.0 Invest C02 removal RHO per t/y 853 853 Invest TCE saved RHB per TCE/y 541 541 CASE STUDY ANALYSIS NUMBER E4 Steam traps without With project project more traps NOTES Energy savings TCE/trap I I A shortage of about 12 million traps was identified in the case study report. C02 emission kg/TCE 651.00 651.00 emission Factors 502 emission kg/TCE 27.30 27.30 kg/TCE 2 Added capacity at the Yangzhou Valve Factory TSP emission kg/TCE 12.00 12.00 is expected to be 18,000 traps per year For an investment of 15.6 million RMB. Investment for CS OA6 RMS 0 15.6 Investment shown is for trap manufacture and Capacity for CS 10A6 traps/yr 0.18 has no relation to the trap purchaser. Investment Y/annual trap manuFact 03 3 Savings using good quality traps was estimated as follows: M Duty say 0.2 L/h steam per trap. Calculated -- Financial -- IRR xxxxm percent . Savings say 1X or 0.002 t/h, equivalent Calculated payback inc construction time xXxxn years to say 10 tpy steam or I TCE per year per trap. BRU FORECAST 1990 2000 2010 4 For BRU, assume additional 10 million traps Steam traps made 10^6 per yr 0 2 10 per year will be made, 2 million/y (say 10 new or upgraded plants) by 2000 and all (50 Energy saved 10A3 TCE/y 0 2000.0 10000.0 plants) by 2010. C02 reduction J0A3 t/y 0 1302.0 6510.0 5 For accel. case, assume 4 million traps/y by 502 reduction 10^3 t/y 0 54.6 273.0 2000 (up to 20 plants). TSP reduction 10^3 t/y 0 24.0 120.0 Investment 10A6 RHO 166.0 829.9 Invest C02 removal RH per t/y 127 127 Invest TCE saved RHO per TCE/y 93 83 ACCELERRTED FORECAST Steam traps made million/yr 0 4 20 Energy saved 10^3 TCE/y 0 4000.0 10000.0 C02 reduction 0A3 t/y 0 2604.0 6510.0 502 reduction 10A t/y 0 109.2 273.0 TSP reduction 10A3 t/y 0 48.0 120.0 Investment 10A6 RHO 331.9 029.8 Invest C02 removal RHO per t/y 127 127 Invest TCE saved RHO per TCE/y 83 83