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www.wisions.net

7Corporate energy and material Efficiency makes good business sense

III. Issue 2006

PREP

Promotion of ResourceEfficiency Projects


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WISIONS is an initiative o the Wuppertal Instituteor Climate, Environment and Energy, carried outwith the support o the Swiss-based oundationPro-Evolution, to oster practical and sustainableenergy projects.

Sustainable development is possible. Numerous

innovative and valuable contributions rom di erentcountries, ields and institutions have shown that anappropriate reconciliation o economic, ecological andsocial actors is not unrealistic utopia. We have madea promising start, but the greatest challenge still ac-ing us in the 1st century is to learn how to use theworld's resources more e iciently and in an ecologi-cally sound and socially balanced way.

Progress is being made; however, ourteenyears a ter the UN Con erence on Environmentand Development in Rio de Janeiro, many people,

especially in developing countries, still lack access toresources, clean technologies, and education. At thesame time, people's level o resource consumption andmeans o production remains unsustainable.

To meet global challenges like climate change,water scarcity and poverty, it is necessary to osterprojects o potential strategic global importance bysupporting them so that they can be implementedlocally. Examples o good practice need to be activelypromoted to a wider audience.

WISIONS promotes good practice in resourcee iciency through its publication o relevant success-ul projects in its Promotion o Resource E iciencyProjects: PREP

WISIONS also provides consulting and supportto ensure the potential seen in visions o renewableenergy and energy e iciency can become matureprojects through its Sustainable Energy ProjectSupport: SEPS

WISIONSSustainable Development is Possible

Photo: PhotoCase.com


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Corporate energy and materia l eff ic i ency makes good business sense

The e icient use o both energy and mate-rials is not only an environmental issue,but also a basic corporate goal. The opti-mal organisation (assessment, manage-ment, communication etc.) o the use o production actors such as raw materialsand supplies is a central aspect o business

e iciency independent o the environ-mental engagement o a company.

Faced with rising energy prices and thelimited availability o energy resources,corporate energy e iciency strategies arebecoming more and more important. Theirst step has been taken in many indus-trialised countries and industrial energydemand has started to decline due tomore e icient processes and modi iedstructures. However, the ull technicalpotential or increasing energy e iciency

has not yet been exploited and thispotential is still to be explored in rela-tion to business options. Studies showthat current energy use could be reducedby up to 50 percent without a ectingper ormance.

Scarcity o resources does not onlyapply to energy resources, such as oilor gas, but is also relevant or materialresources e.g. important metals like cop-per or zinc. Internationally, the use o

materials is high; or example the use o materials in industrial countries is cur-rently between around 1 and 74 tonnesper capita per year. As uture access tosuch resources will become more di -icult, the e icient use o materials has

to be recognised as an important actorin competition and innovation.

As the e icient use o energy andmaterials is a basic corporate goal, manygood practice examples already exist.However, energy e iciency and materiale iciency are generally treated as sepa-

rate entities, with little e ort made toind common ground between the two.This is regrettable, since energy e iciencyand material e iciency are o ten highlycomplementary and their integration canprovide synergies that broaden the scopeo their application and give more e ec-tive results both on an environmentaland economic level.

In this brochure, WISIONS ocuseson corporate strategies or improvingenergy and material e iciency.WISIONS

presents projects rom Slovakia, Germany,the UK and Peru that have been suc-cess ully implemented, with the inten-tion o urther promoting the particularapproaches used by these projects. Usinga key number o internationally acceptedcriteria, the main consideration or theselection o the projects was energy andresource e iciency, but social aspectswere also o relevance. The assessment o the projects also included the considera-tion o regional actors acknowledgingdi erent needs and potentials.

All projects that ul illed WISIONS application criteria were independentlyreviewed and our o these, all with thepotential to make a signi icant impacton global energy and resource e i-ciency, are published in the ollowingpages. WISIONS is pleased to presentgood practice examples rom ambitiousprojects which have been success ullyimplemented on di erent continents. Allo these projects are appropriate withintheir local context and have been devel-oped to a level which meetsWISIONS selection criteria. Although uniquely

designed or a particular setting andproblem, the projects presented can beadapted to di erent situations or canprovide valuable in ormation rom theirimplementation phase. Links to the illus-trated good practice examples shown inthe brochure, as well as a couple o other

issue-related good practice projects, areavailable onwww.wisions.net.

The selected projects are not intendedto represent the only possible course o action to take in the area o corporateenergy and material e iciency but theydo demonstrate promising approaches.

The nextPREP-brochure, ollowing thesame objectives, namely to collect, evalu-ate and promote good practice examples,will highlight the issue o SustainableBio uel Production and Use.

Photos: PhotoCase.com


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Location:Levice, Slovakia

Projects Aim:Saving energy andimproving energy

e iciency

Technical Answer:Cleaner Production

audit andimplementation o

adequate measures

Levitex was established in 1970 and the companycurrently employees around 670 workers. Levitexproduces textiles and clothing rom cotton and the joint-stock company owns a spinning mill, a weavingmill, a inishing plant and a garment plant.

The Slovak Cleaner Production Center (SCPC) car-ried out a Cleaner Production Assessment, startingwith a preliminary audit and presentation o thepossible energy savings to the management. This wasollowed by days o training, which included thecalculation o current energy losses. Based on thesenew skills, the project team (7 Levitex engineers and consultants rom the SCPC) analysed the compa-ny's energy and water consumption and establishedan action plan. All existing leakages or example 700 kg o the not lye condensate (70 C) per hourwent into the sewage system were repaired andadditional measures were introduced. Most o themeasures had a very short payback period; or exam-ple, the steam pipe insulation had a payback period

o months and measures or reusing hot watercontaminated with lye distillate and condensate wereimplemented within weeks.

BENEFITS

In addition to more e icient production processes, thebene its consist o electricity and natural gas savings,a decrease in greenhouse gas emissions (a reductiono about 16 percent or 0,000 tons annually), and sav-ings o ,94 GJ annually through reusing hot watercontaminated with lye distillate and condensate.

The project also had bene its or the employees; itimproved teamwork, working methods and the man-agement o processes.

Cleaner Production and Energy Efficiency inthe Textile Company LEVITEX

Hot lye condensate (Photo: J. Burjaniv)


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SUSTAINABILITY

Top management gave their supportto the whole project and the technicaldirector was a member o the projectteam. The start-up was initiated with low

investment solutions in relation to bothmaintenance and the control and man-agement o the project. Subsequently, thecompany raised inance or investmentinto the drying machines.

All solutions were technically easibleand easy to implement. Additionally, thecompany received in ormation relating tourther energy saving possibilities.

METHODOLOGY

It was necessary to gain the supporto top management or the CleanerProduction Assessment. Subsequently,a preliminary audit was undertaken inorder to determine the energy savingpotential. Team training ollowed onrom this. The action plan started withsimple measures that could be rapidlyimplemented and required low invest-ment; e.g. maintenance (heating control,repairing windows, eliminating leakages,repairing pipeline insulation).

FINANCIAL ISSUES

An overall investment o aboutUS$ 5,000 was required to inance themeasures taken or the utilisation o distillate, the insulating o the pipes andor making improvements in mainte-nance. UNEP assisted with the inanceor maintenance and credits or leasingarrangements were negotiated or theother technical measures.

Some measures are highly cost-e ec-tive. For example, US$ 5,000 was investedin the reuse o hot water contaminat-ed with dye distillate and condensate,whereas the annual bene it o this meas-ure amounts to around US$ 6,600.

OBSTACLES

As the top management supported theproject and Levitex engineers made sig-ni icant e orts to implement the neces-sary measures, no obstacles hindered the

project.

REPLICABILITY

This project could easily be replicated inother locations, as water and steam leak-ages are common problems. The same isapplicable to pipe insulation and incor-rect heating temperatures. These mayappear to be minor issues, but resolvingthese problems will produce signi icant

inancial and environmental bene its.

CONTACT

Slovak Cleaner Production CenterMr. Jaroslav Burjanive-mail: [email protected]: www.scpc.sk

Condensate leakage (Photo: J. Burjaniv)

Steam leakage (Photo: J. Burjaniv)


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E izienz-Agentur NRW (EFA) is the prime contactor businesses in the German state o North Rhine-Westphalia or all queries regarding cleaner produc-tion and resource e iciency. The agency was oundedas a private company in 1998 as part o an initiative o the Ministry o the Environment, Nature Conservation,Agriculture and Consumer Protection o North Rhine-Westphalia.

EFA shows orward-looking SMEs the potentialbene its o ered by cleaner production (CP). Theagency also demonstrates how pro itable measurescan be implemented in speci ic cases. Through speci icconsulting services, EFA provides businesses with onsite assistance or their technical and organisationalissues.

With the PIUS-Check (PIUS is the acronym o theGerman "Produktionsintegrierter Umweltschutz" [theequivalent o CP]), EFA provides companies with up to500 employees in North Rhine-Westphalia with a triedand tested instrument or the development o newbusiness opportunities. With the check, the relevantmaterial lows and current levels o production tech-

nology are recorded and possible improvements inproduction are illustrated.

BENEFITS

I all the potential options deriving rom PIUS-Checkscarried out to date were to be implemented, annualresource savings in production processes o 15.9million could be achieved. Additionally, 1.7 millioncubic metres o water, 17,9 8 tonnes o waste and90.4 GWh o energy could be saved. Aspects suchas improved product quality, reduced waste levels orincreased legal con ormity are not taken into account,as they cannot be directly quanti ied.

The PIUS-Check can also improve the workingenvironment in production acilities through cleanerprocesses, lower emissions and new procedural tech-niques. In many cases, through the removal or mini-misation o noise or odour pollution, companies havebeen able to bene it immediately rom the implemen-tation o PIUS measures.

Location: North

Rhine-Westphalia,Germany

Project's Aim:Improving Cleaner

Production in SMEs

Technical Answer:Methodological

advice or SMEs the PIUS-Check

PIUS-Check Success in Cleaner Productionfor Small and Medium Sized Enterprises (SMEs)

Photo: E izienz-Agentur NRW


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SUSTAINABILITY

The PIUS-Check aims to encourage SMEsto incorporate CP principles into theirlong term business strategies and, inthis way, to initiate continual improve-ment processes. A signi icant number

o businesses that have organised theirproduction e iciently as a result o aPIUS-Check continue to ocus on CP. Incertain industries and regions, corporatenetworks have been ormed in order toexchange CP strategies and to in ormeach other o the latest developments.The experiences that are shared in thisway low into the PIUS-Check and resultin a continual improvement process.

METHODOLOGY

The PIUS-Check is a cooperation projectinvolving three partners. In agreementwith the company, EFA hires a processconsultant who is concerned with thetechnical area in question. The consult-ant introduces his expertise to the projectwhile EFA directs the overall process.The PIUS-Check proceeds in our steps:the initial discussion, the macro-analysis,the micro-analysis and the planning o measures.

The PIUS-Check comprises nine con-sulting days. A ter three or our months,the company is provided with a concreteplan o action. Subsequently, the com-pany can begin putting these measuresinto place with low investment costs,

within a manageable time rame andwith qualitative support rom a neutralinstitution such as EFA. The total timeinvolved rom the initial meeting to thedrawing up o the action plan is betweensix and nine months.

FINANCIAL ISSUES

The PIUS-Check consultation costs onaverage 6,500. EFA covers up to 70 per-cent o the costs (up to 4,500), plansand directs the project and supports thecompany in the implementation stage.In addition to this, EFA also supports thecompany in the appropriate inancing o the measures through accessing suitableunding programmes.

Since the start o the project PIUS-

Check in the year 000, over 60 PIUS-Checks have taken place. 15 companieshave implemented measures and intro-duced new and renewable productionstructures, with a combined investmento over .6 million. The savings madein operating supplies alone amount toapproximately 7.1 million per yearor these projects. Overall investmento around 5 .6 million is anticipatedor all the projects that have startedto date. From this, an estimated savingin operating supplies o approximately 15.9million per year will be the result.For water, savings o around 1.8 millioncubic meters per year are predicted.

OBSTACLES

The implementation o the PIUS-Checkin 000 required an intensive awarenesswork at the small and medium sizedenterprises by EFA sta . Many SMEs hadnot worked with external consultantsuntil then and were sceptical o the EFA-proposal. Other initial problems were therelatively low awareness o the instru-

ment and the limited number o practicalexamples.

REPLICABILITY

On the basis o the success in NRW, other

German ederal states have embarkedon their own programmes, providing asimilar analysis tool to the PIUS-Check.Since 005, the PIUS-Check concept hasbeen used as the VDI (Association o German Engineers) guideline 4075 orCleaner Production. In the Germany inJapan Year 005/ 006, the Check wasper ormed in several Japanese compa-nies. Furthermore, England, Switzerlandand China have shown interest in thePIUS-Check concept.

CONTACT

Effizienz-Agentur NRWMr. Matthias Gra e-mail: e a@e a.nrw.deURL: www.cleanerproduction.in o

Photos: E izienz-Agentur NRW


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In 00 BioRegional initiated a kerbside paper collec-tion scheme which aimed to address the main barriersto increasing o ice paper recycling in central citylocations. BioRegional was inspired to launch TheLaundry service having ound that the average o icebin contained up to 60 percent o per ectly goodwhite paper and that 60 percent o business paperwaste comes rom SMEs, a market that conventionalrecycling services were ailing to capture.

The scheme has opened up recycling possibilities tosmaller o ices that were previously unable to recycle,as paper collectors asked or several bags to be illedbe ore they would make a collection small o icessimply didn't have the storage space. In addition tothis, complicated and expensive collection chargeso ten excluded SMEs on a price basis. The Laundryprovides a weekly kerbside collection o waste paperand cardboard, with no minimum collection require-ment, on a pay per use basis, making it a cheap, easyand lexible solution or small business recycling.

Collecting recyclable material is only one part o a success ul recycling scheme; to make the processtruly sustainable the markets or the end productneeded to be driven orward, increasing demandwhich, in turn, makes collections more cost-e ective.The Laundry promotes local paper loop recycling,collecting paper rom businesses that is then recycledlocally to produce a recycled o ice paper that thebusinesses can buy back. The Laundrys customers canbuy back 100 percent recycled paper (made rom thepaper they have thrown away) at a reduced rate roma local stationer.

BENEFITS

In 005/ 006 The Laundry recycled 00 tonnes o paper. This is equivalent to 5,100 trees saved romelling and provides a saving o 180 tonnes o CO.The ecological ootprint o the local paper loop is just14 percent o that o virgin imported paper. This is

The Laundry Office Paper Recycling

London,UK

Project's Aim:Increasing SMEs

share in o ice paperrecycling

Technical Answer:Innovative kerbside

paper collectionscheme

Example o the Laundry's communications strategy (Photo: The Laundry)


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because it uses less than hal the energy,saves trees, deals with waste and is bet-ter than incineration which producesCO emissions. Increasing recycling alsodelivers social bene its. Because it is avery labour intensive process, recyclingcreates large numbers o jobs, some o

which are suitable or people with lim-ited quali ications including those romsocially excluded groups.

SUSTAINABILITY

Over 700 o ices have joined The Laundry this amounts to approximately 6, 00o ice sta involved in the scheme. 99%o The Laundry customers were not pre-viously recycling in the o ice at all. TheLaundry recruits over 0 new businesses

a month which is the result o an innova-tive and highly targeted marketing cam-paign. In the last 6 months The Laundryhas collected an average o 6 tonnes o recyclables per month. 5 percent o itscustomers are now buying back recycledpaper and, there ore, helping to close theloop. Land ill tax is rising at the rate o per tonne per year; councils will haveto raise their waste prices accordingly.When this happens, The Laundry will bein an excellent position to raise its pro ileurther and expand rapidly.

METHODOLOGY

Soho was chosen as the irst collectionarea as it itted the ollowing criteriarequired or the success o the scheme.These were:

n a high density o businesses ena-bling the collection to be time andresource e icient

n a high proportion o small busi-nesses which were not alreadyrecycling

n demographic composition it waselt that younger people would bemore inclined to recycle at workand would be receptive to a newstyle o commercial recycling

n a working relationship was estab-lished with the London Borough

Council regarding placing Laundrybags on the kerbside or collection

The Laundry ocuses on the positiveaspects o recycling and promotingresource e iciency. This is re lected in its resh and unky marketing materials andcommended communications strategy,which has captured both green consciousbusinesses as well as tapping into non-green aware organisations. The Laundrymaximises the opportunities or recyclingby ocusing on a level o customer servicenot usually provided by the waste andrecycling sector.

FINANCIAL ISSUES

In just three years The Laundry hasmoved rom 100 percent unding tobreak even this year and become inan-cially sel -su icient.

A proactive approach to marketing andmaking customer service a priority meanthat there has been a steady growth inthe customer base. By placing geographi-cal restrictions on the kerbside service,

and by channelling the marketing o theservice into small geographical pockets,The Laundry has been able to expand in acost-e ective manner.

OBSTACLES

The biggest obstacles to overcome in thisproject were, irstly, customer recruit-ment and, secondly, the labour intensivenature o dealing with SMEs. The Laundryhas designed a bespoke database whichhas streamlined the order system anduses automated processes to reduce sta hours. In terms o the collection, TheLaundry has planned the route so thatthe 750 customers have collections in amatter o hours, thus reducing time andsaving transport costs.

REPLICABILITY

SME waste is not a problem that isunique to London. In nearly all regionsSMEs are employing the majority o thepopulation and there is no reason whyThe Laundrys unique ocus on the SMEsector could not be replicated elsewhere.Local solutions are the key to makinguture business sustainable, and the localpaper loop represents a tried and testedsolution to resource e iciency, targetingwaste and encouraging the buying o recycled products.

CONTACT

BioRegional Development GroupMs. Rachel Fleminge-mail: rachel. [email protected]: www.thelaundry.biz

Example o the Laundry's communications strategy(Photo: The Laundry)


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The Cleaner Production audit at one o Lava Flashs pro-duction plants was conducted between 15 Septemberand 15 October 005. The project team consisted o industrial and mechanical engineering students andwas led by an experienced pro essor. The aim wasto discover cleaner production opportunities and topropose an action plan suited to the possibilities o this small enterprise.

During the project the team observed that, due toits nature, the plants production process consumesa great deal o chemicals that are not used in ane icient or optimal way, and that no action is takento treat these chemicals to eliminate certain residuesthat are generated by the process.

BENEFITS

By implementing the proposed actions, the produc-tion plant will bene it in terms o health and sa ety,as there are lots o possibilities or improvement withlow investment.

The project also has positive impacts in water andenergy savings. In case o water, wastewater is nottreated and the use o chemicals or washing and rins-ing is not very e icient, creating post-ecological dam-age. There ore, the action with the greatest potentialto make a positive impact is the management o chemicals. The measures do not need substantialinvestment, so the company can implement them withits own resources.

By implementing all proposed measures, the eco-nomic bene its exceed the implementation costs:implementation costs o about US$ 80,000 produceannual economic bene its o about US$ 150,000.

Cleaner Production Assessment at Lava Flash

Location: Peru

Project's Aim:Discovering cleaner

productionopportunities

Technical Answer:Cleaner Production

Assessment andaction plan

Washing equipment


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SUSTAINABILITY

The Peruvian economy has grown annu-ally by around 5 percent to 6 percentover the last 5 years; the clothing andtextile sectors are thriving. In addition, anew ree trade agreement with the USA

has ensured good prospects or the sec-tor. This industrial laundry treats clothesor the local and export markets, so theyhave the opportunity to solve their inan-cial and technological problems throughinvestment that has a high likelihood o return.

The need or change is in response tonew market conditions in the sector; overthe last decade the international brandshave become increasingly demanding inrelation to the conditions in which their

products are manu actured. It is verycommon to see requests or certi icatessuch as WRAP, ECOTEX, ISO 14001 or oractories to undergo speci ic audits byexternal inspectors to veri y environmen-tal and social liabilities.

METHODOLOGY

The CP assessment included, or exam-ple, recommendations or the improve-ment o health and sa ety managementwithin all the operations. The proposedaction plan or the implementation o

these measures requires approximately5 months. Some measures represent apermanent change in practice, such asthe constant revision o the air- uel ratioin the boilers burner and the combustionregulation o the LPG burners.

The report was sent directly to the

owners o the company. The owners arenow making changes in supervisory per-sonnel and have indicated to the projectteam that the measures will be imple-mented be ore the end o 006.

FINANCIAL ISSUES

The consultancy was carried out withoutany need or unding; all the participantso the project team were students whowanted to develop skills in consultancy.

The study shows that water and chem-ical use can be reduced by up to 9percent, saving US$ 10 ,618 per year. Theestimates indicate that the consumptiono heavy uel R-500 can be reducedby 16.4 percent, resulting in savings o US$ 40,470 per year, and that LPG con-sumption can be reduced by around 10percent, or by approximately US$ 6,5 0per year.

OBSTACLESThe most critical issue was to convincethe top management that the chang-es were necessary. A ter reviewing thereport and discussing the possible out-comes with the project team, the man-agement began looking at the inancialimplications and evaluating the potentialreturn on investment.

REPLICABILITY

There are classic low hanging ruits,where changes can be implemented atpractically no cost, and measures in the

ollowing generic processes can be repli-cated easily in other acilities:

The boiler: typical losses in steam pip-ing, non-insulated supports, and recoverysteam tanks and bad burning controlsare common in SMEs with poor manage-ment.

The washing and dying processes orthis type o clothing use the same equip-ment as in other countries, where thecommon issue is the control o dosage o chemicals and water. In most cases highlevels o water consumption and pollu-tion o waste water are typical.

CONTACT

Pontificia Universidad Catolicadel PerMr. Luis de la Torree-mail: [email protected]: www.pucp.edu.pe

Auditing Team: Jose Jarama, Al onso Leo, MildredLinares, Miguel Carrillo, Yenue Arias, Luis de la Torre

Wrong pipelines installation and insulation


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Institute of Workand Technology

Science CentreNorth Rhine-Westphalia

Institute for CultureStudies


Wuppertal Institute forClimate, Environment andEnergy












Wuppertal Institute 006. All rights reserved

Prior Issues

I. Issue 004 Resource E icient ConstructionII. Issue 004 Water and Energy Precious ResourcesI. Issue 005 Sustainable Transport Solutions or Growing DemandII. Issue 005 Sustainable Tourism Combining Holidays with Local Needs

I. Issue 006 Microfnance and Renewable Energy Investing in a Sustainable FutureII. Issue 006 Energy in Schools Energy Education and Projects or Reducing Energy Demand in Schools

Imprint

Publisher: Wuppertal Institute or Climate, Environment and EnergyEditorial Sta : Wuppertal Institute: Carmen Dienst, Dr. Man red Fischedick,

Manuel Lutztriple innova: Maike Bunse, Pro . Dr. Holger Wallbaum

Photos: All images in this publication have been reproduced withthe knowledge and prior consent o the participants.

Lector: Katherine Penker, Perthshire, ScotlandLayout: VisLab, Wuppertal InstitutePrinting: O set Company, Wuppertal

100 % Recyclingpapier ENVIROTOP

Wuppertal Instituteor Climate, Environment and EnergyDoeppersberg 194 10 WuppertalGermany

e-mail: in [email protected]: + 49 (0) 0 . 4 9 5

More in ormation aboutWISIONS, application criteria orPREPand SEPS, aswell as priorPREP-issues are available at

www.wisions.net

corporate energy and material efficiency makes good business sence (www.wisions.net download-dateien...

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