Energy Efficiency in Serbian Industry – Implementation of Cleaner Production Cleaner Production Centre of Serbia Faculty of Technology and Metallurgy, University of Belgrade

Cleaner Production in Serbia Cleaner Production Centre established in 2007 as UNIDO Project funded by Federal Government of Austria and Government of the Republic of Slovenia Part of the Faculty of Technology and Metallurgy, University of Belgrade external consultants, Advisory Bord support of Ministry of Environment and Serbian Chamber of Commerce Inauguration of the Serbian Cleaner Production Centre on the 6 th Ministerial Conference “Environment for Europe” October 11, 2007, Belgrade

Cleaner Production Definition “The continuous application of an integrated preventive environmental strategy applied to processes, products, and services to increase overall efficiency and reduce risks to humans and the environment.” (United Nations Environment Programme)

Workshops for the industry on cleaner production Around 300 people from 60 participating companies attended workshops

CP in companies - visits - Informational meetings - Quick scan audits by NE - Energy audits by EE - CP detailed assessments by IE and NE - Consulting on collecting data and defining CP options Agrosava CP Assessment Bambi – Banat CP Assessment Stark – meeting of CP team and experts Detailed CP and energy assessments were carried out in 60 companies

CP in companies – evaluation and implementation - List of CP options and Action plan for implementation of proposed options - Submission of Report and its evaluation - CP award - Monitoring and continuation CP Award Ceremony in Serbian Chember of Commerce In total 57 companies from different sectors were awarded

Resource Efficiency and Cleaner Production (RECP) Project in EPS (Power Company of Serbia) – part I In total, seventy-six RECP options were identified and preliminary results (50 % of options evaluated) show that with investment of 164,000,000 € folowing consumption reductions could be reached: Lignite: 330,000 t/year, Water for 700,000 m3/year, Electricity for 20 GWh/year, CO2 emission for 200,000 t/year Ash (waste) for 2,000,000 t/year

Cooperation with Municipalities Local authorities in Pancevo and Cacak signed an agreement with the Cleaner Production Center of Serbia on the introduction of cleaner production City of Pancevo: 10 companies – petrochemical company, waste electrical and electronic equipment recycling and 8 Public Utility companies 11 local consultants City of Cacak: 7 companies, the building of the municipality and two schools City of Pancevo – second phase: 5 private companies

Cleaner Production practices 1. Good housekeeping take appropriate managerial and operational actions to prevent: - leaks - spills - to enforce existing operational instructions

Example

25% of total length of pipes for hot water distribution were not well insulated Reduction of coal by 6,000 tons and CO 2 by 11,200 tons Investment: 155,000 EUR Savings: 125,000 EUR Payback period: 1.2 years

Cleaner Production practices 2. Input substitution substitute input materials - by less toxic - or by renewable materials - or by adjunct materials which have a longer service life-time in production

Example RB Description of the problem Proposed option of the cleaner production Potential for the reduction Estimated expenses [ € ] Estimated savings [ € /g] 1 Large expenses and air emissions due to usage of the heavy oil for firing of the boiler as well as for support in lignite combustion Replacement of heavy oil with the light fuel or gas - Demi water 35,000 m 3 /y x 2 units = 70,000 m 3 /year - 10,000 tons of coal x 2 unit = 20,000 tons of coal/year MWh/per year (2 motors for HO pumps and 2 for demi water - each 30 kw) -Reduced quantity of sulphur in flue gases Reduction of t of CO 2 /per year Increasing costs of fuel prices 1.15 million € / year Savings on the production of demineralised water for heating fuel oil 280,000 EUR - Savings in electricity consumption 38,000 EUR - Savings on coal 240,000 EUR - Savings due to increase the total unit of 0.5%, due to the lack of contamination of the boiler 4.8 million EUR x 2 units

Cleaner Production practices 3. Better process control modify: - operational procedures - equipment instructions and process record keeping in order to run the processes more efficiently and at lower waste and emission generation rates

Example Installation of gas and electricity meters/ Installation of computer- based monitoring program By continuous monitoring and recording of consumption of the main water and energy consumers (boiler, makeup water for chillers, hot water generation, slaughterhouses, meat processing, trucks cleaning, temporary houses), monitoring production related specific indicators, and training of operators, it is assessed the company could reduce energy and water consumption by %. Comparing to current consumption of m 3 of water, 4,317,598 m 3 of gas and 27,879 MWh of electricity it could bring savings up to 50,000 m 3 /year of water, 215,000 m 3 of gas and 1.35 GWh of electricity. This leads to reduction of CO 2 by 920 t. Investment: 60,000 EUR (total cost) Savings: 236,000 EUR (188,000 for energy and 48,000 for water) Payback period: 3 months

Cleaner Production practices 4. Equipment modification modify the existing production equipment and utilities in order: - run the processes at higher efficiency - lower waste and emission generation rates

Example Even while the project was still ongoing, the company started to implement some of the cleaner production options:  exhausted capacitor batteries were replaced, the return of investment of 5,400 EUR was 9 months  the process of purchasing an industrial suction dust remover in order to replace the current practice of cleaning with compressed air was initiated, 9,000 kWh electricity was reduced  One of the cleaner production options is installation of the system for automatic boiler desludging. It is estimated that annual consumption of steam amounts to 5,700 tons. Losses in steam consumption caused by manual desludging stand at around 15%, while automatic desludging would reduce these losses to 3-5%. This would lead to gas savings of 12,000 m 3 per year. Investment 12,000 EUR; estimated savings 4,300 EUR

Example Condensate from the two heating substations has been discharged into the sewer system. Measurements of the discharged condensate quantities have shown that resulting heat loss, expressed in terms of fuel consumed, is equivalent to heavy oil consumption of 21 t over the heating period. A carried out reconstruction has provided for a condensate, which has been discharged from the system for years, to be returned into the process (collector and a pump for condensate transport). Apart from the expected financial benefits resulting from reduced heavy oil consumption of 21 t/a, described measure has also contributed to environmental improvements observed through annual reduction of CO 2 emission equal to 68 t/a.

Cleaner Production practices 5. Technology change replacement of: - the technology - processing sequence - synthesis pathway in order to minimise waste and emission generation during production

Case Study - Petrohemija Since the beginning of the cleaner production project in 2010 till today, the company HIP Petrohemija has invested more than 9 million € in various cleaner production options, which resulted in reduction of consumption of gas by around 520,000 m 3 per year, of water by 30,000 m 3 per year, and of chemicals in substantial amounts. Some of the implemented measures are primarily related to pollution prevention, and they considerably contribute to the reduction of negative impact on the environment and human health. For instance, in the Ethylene Factory, by investing only 1,000 € and changing the type of steam used for flushing of pyrolytic furnaces, the savings of around 120,000 € were achieved, i.e. the consumption of feeding boiler water was reduced by around t per year, and the consumption of chemicals was reduced by around t per year.

Case Study - Petrohemija There are several pumps in the Ethylene Factory that use water steam, but that can use electricity as their energy source (one pump has a turbine, the other has an electric engine). These pumps switched to the use of electricity, which is not only cheaper than water steam, but it also reduces the consumption of fossil fuels, thus reducing pollution. The largest investment, of around 7.5 million €, was completed last year, with the reconstruction of the HDPE Factory. This has a multiple environmental impact, by reducing emissions, reducing the consumption of isobutene by about 100 t per year, reducing the generation of waste catalyst in the amount of 1,500 kg per year, and reducing the consumption of gas for activation furnace by around 30%. Good housekeeping measures such as insulation of pipelines, valves and flanges, replacement of malfunctioning condensate separators, condensate return, or repairs of water steam leakage have resulted in savings of around 180,000 € with a return period of around 4 months.

CP option Investment € Saving € /y Returns of Investment Impact on the Environment Option 1: Optimization of burners on furnaces for baking biscuits (setting relations fuel-air) 1,20015,0001 month Reducing consumption of LPG by 30 t / yr, or reducing CO2 emissions to 78.6 tons / year OPTION 2: Elimination of technological steam on lines for baking biscuits - replacement of furnace on line B2 / 1 1,100,000280,0004 years Reducing consumption of LPG for 530 t / yr, or reducing CO2 emissions by 1390 tons / year, increasing the energy efficiency of the process of burning, reducing irreversible resources OPTION 3. Optimizing the parameters of steam and hot water boilers of working unit Vrsac -13,800immediately Reducing consumption of natural gas for 320,000 m3/year and reduce CO2 emissions to 640 tons / year OPTION 4. Shortening the time of mixing in production of soup fill, without changing the quality. -1,900immediately Reducing electricity consumption by 40 MWh / year, or reducing CO2 emissions to 41.6 tons / year OPTION 5. Installation of systems for heating sanitary water waste heat recovery from flue gases from tunnel kiln on line B1 / 2 36,4009,0004 years Reducing consumption of LPG by 17 t / yr, or reducing CO2 emissions to 44.6 tons / year, reduced emissions of waste heat Case Study – Bambi - Banat

CP option Investment € Saving € /year Returns of Investment Impact on the Environment OPTION 6. Installation of systems for heating sanitary water by recuperation of waste heat recovery line B2 / 4 29,0007,1004 years Reduction of electricity consumption to MWh / year, or reducing CO2 emissions by tons / year, reduced emissions of waste heat OPTION 7. Installation of facilities for reactive energy compensation in TS2 of working unit Pozarevac 18,0006,2003 years Reduction of reactive power for the year 1150 kVArh/ year OPTION 8. Turning off lighting in the production plant during certain periods of the day -2,500immediately Reducing electricity consumption by 50 MWh / year, or reducing CO2 emissions to 52 tons / year OPTION 9. Introduction of energy management in the company -19,4003 months Reducing consumption of LPG and electricity, 15% reduction of energy consumption, reducing CO2 emissions by up to 60 t / year just on the line B2 / 4

Cleaner Production Results

RESULTS: So far, ( ) total of 60 companies participated Average savings per company: 100,000 EUR/year Average decrease of water consumption: 50,000 m 3 /year Average decrease in electrical power consumption: 500 MWh/year Average decrease in CO 2 emission: 500 t/year