SMALL AND MEDIUM SCALE INDUSTRIES (SMIs) IN ASIA: ENERGY, ENVIRONMENT AND CLIMATE INTERRELATIONS

School of Environment, Resources and Development, Asian Institute of Technology, PO Box 4, Klong Luang, Pathumthani 12120, Thailand Fax: (66) (2) 524-5439, Tel: (66)(2) 524-6212, Email: smiasia@ait.ac.th Issue No. 16

Volume 5, No. 1

January - March 2003

Cleaner Production Promotion Law Has Taken Effect in China

On 29 June 2002, the Standing Committee of the 9th National Peoples Congress (NPC) of the Peoples Republic of China adopted the Law on Cleaner Production Promotion. The fast-track adoption of the Law can be attributed to the following factors: Many NPC Standing Committee members, who are Chinas key legislators, are aware, accepted and favoured the cleaner production concept. The nature of the law is more incentive-based rather than being a punitive one. Chinas recent WTO accession also adds urgency to promote cleaner production among industries. The Asian Development Bank provided a Technical Assistance to the NPC Environmental Protection and Resource Conservation Committee with regard to the preparation of the draft law.

Chinas existing environmental legislation reflects the conventional end-of-pipe approach. This type of environmental regulation was necessary to deal with the severe environmental problems associated with the fast industrial development during the past twenty years. However, over the last ten years, China, like other countries, has begun to consider the flaws of this approach to environmental problems: high pollution abatement costs which undermines Contents enterprises profits and competitiveness; difficulty in eradicating pollutants and risk in pollution transfer; Cleaner Production Promotion Law has taken inability to reduce the waste of energy and materials; Effects in China and unaffordable government regulatory costs.

SMI Fellowship Program at the Asian Institute of Technology GEM Vibratory Fluid Bed Dryer Desiccated Coconut (DC) Industry Installation of Photocells in Speed Frames of a Spinning Mill Improvement in Withering Process SMI Publications Information on Capacity Building Websites Publications Newsletters

China began implementing cleaner production about ten years ago. The State Environmental Protection Administration (SEPA), the State Economic and Trade Commission (SETC), the Ministry of Science and Technology (MOST) and other institutions have been cooperating with the World Bank, Asian Development Bank, UN agencies and numerous bilateral agencies on awareness raising, training, information dissemination, demonstration activities, etc. Continued on page 2.

SMI newsletter is published quarterly as an activity of the project SMIs in Asia: Energy, Environment and Climate Interrelations under the Asian Regional Research Programme in Energy, Environment and Climate (ARRPEEC) - Phase III and is funded by the Swedish International Development Co-operation Agency (Sida). The newsletter is designed to disseminate information from this study and from other sources on energy efficient and environmentally sound technologies of selected small and medium scale industries in Asian countries to policy makers, industrial associations and other related organisations, equipment suppliers, factories, academics and international organisations. SMI Newsletter, January - March 2003, Volume 5, No.1 1

Cleaner Production
Continued from page 1. Due to a series of reasons such as prevailing end-of-pipe control environmental regulatory framework, lack of institutional capacity and policy coherence to promote cleaner production, difficulty in gaining finance for cleaner production projects, and inability to change the mindsets of industrial managers, China could gain only limited success in spreading cleaner production over the past ten years. The discontent with previous accomplishments in cleaner production promotion has led to a growing consensus in China for the need for a new, integrated approach towards cleaner production implementation. Although making large scale changes to the existing environmental protection laws could also help to promote the aims of cleaner production to some extent, there was widespread agreement that formulating a separate cleaner production law would have lower cost, would show effects faster and would be easier to implement. Hence, China has adopted the cleaner production law. The Law on Promoting Cleaner Production has 42 articles, which are grouped into 6 chapters. Chapter 1 (General Provisions) stipulates the general goal, definition, scope of, government position of and support for administrative institution of cleaner production. Chapter 2 (Cleaner Production Popularisation) consists of provisions for the roles and responsibilities of relevant government departments for promoting cleaner production. Chapter 3 (Cleaner Production Implementation) specifies the requirements and obligations of enterprises in adopting cleaner production. Chapter 4 (Inducing Measures) comprises a few reputational, financial and fiscal incentives for the implementation of cleaner production. Chapter 5 (Legal Liabilities) consists of the liabilities of enterprises violating the obligations required by the law. Chapter 6 (Supplementary Article) specifies that the law takes effect on 1 January 2003. Article 34 of the law stipulates that an appropriate portion of funding should be allocated out of the Small and Mediumsized Enterprise Development Fund to support the implementation of cleaner production by SMEs. The above-mentioned SME Development Fund will be established under the Law on Promotion of Small and Medium-sized Enterprises which was adopted on 29 June 2002 itself. For further details contact: Center for Environmentally Sound Technology Transfer (CESTT) (See address on page 8)

Fellowship Programme SMI Fellowship Program at the Asian Institute of Technology (AIT), Bangkok, Thailand
To enhance capacity and mobilize resources in the participating countries of the SMI in Asia Project Phase III under the Asian Regional Programme in Energy Environment and Climate (ARRPEEC), Ms. Jiang Xia (China), Mr. R. Velavan (India), Ms. Filomena I. Abarquez (Philippines), Mr. Anura Vidhanagamage (Sri Lanka) and Mr. Rohitha Thanthilage (Sri Lanka) were offered a one month fellowship to carry out research at Asian Institute of Technology, Bangkok, Thailand. Each research fellow developed a methodology to estimate the GHG emission in the selected SMIs of their countries. They identified the data required and worked on how to handle the uncertainty of secondary data to estimate GHG emission in the selected sectors. The developed methodologies will be used to estimate the GHG emission in brick and ceramic, desiccated coconut, foundry, tea and textile sectors of China, India, Philippines, Sri Lanka and Vietnam.

SMI Newsletter is available as a PDF file at: http://www.serd.ait.ac.th/smi2/smi/roadmap/newsletters.html

2 SMI Newsletter, January - March 2003, Volume 5, No.1

E3ST Fact Sheet GEM Vibratory Fluid Bed Dryer Desiccated Coconut (DC) Industry
In the Desiccated Coconut (DC) industry, the sized meat is subjected to drying to reduce its moisture content from 55% to about 2.5% to 3%. This process is the main energy consumer in the DC mills due to the requirement of hot air. Considering the growing demand of the DC in the world market and rapidly escalating energy costs, GEM Forgings in India has developed a new type of dryer called GEM DC Dryer with a desire to improve the quality of DC and conserving fuel at the same time. The basic concept of fluidized bed drying has an enormous effect on the quality of the dried materials produced. The system comprises pre-drying circuits, which helps to reduce the moisture level of the feed as well as to improve the fuel efficiency. The waste heat is recovered and used for preheating. Due to this energy saving, the overall thermal efficiency of the equipment is increased. Gem DC Dryers are ideally suited for drying DC and has enabled better quality by uniform drying, no yellowing and higher yields with fuel efficiency. Table 1: GEM vibratory fluid bed dryer Type of Industry Application of E3ST Name of the E3ST Name of supplier: GEM Forging pvt. Ltd 10-c Middleton row, 3rd floor, Calcutta 700 071 India Category of E3ST technology Introduction of new equipment Specifications Capacity Water evaporation Inlet moisture level Final moisture content Size of chamber Power requirement: 1. Drying system 2. Dust collection system Process air requirement Type of heater Fuel consumption Drying temperature Energy and Environmental Benefits Energy savings compared to traditional dryers Cost benefits Total investment of the new dryer Productivity improvement compared to traditional dryers Simple pay back period (Approximately) Desiccated Coconut (DC) Industry Drying process Vibratory fluid bed dryer Telephone: (91-33) 2217-7328 (5 LINES) Fax: (91-33) 2217 - 7333 / 2246 9130 E-mail: gem.forgings@gems.vsnl.net.in, gem.forgings@vsnl.com Process substitution Energy saving equipment DC 550-600 kg/hr 700 750 kg/hr 52% - 55% (maximum) 2.5% to 3% 7500 mm X 1060 mm 40.6 KW (54.4 HP) (Installed Load) 11.2 KW (15.0 HP) (Installed Load) 24000 kg/hr. of hot air at 1100C Steam heater or indirect fired heater Depends on type of fuel heater for steam consumption 2-3 kg/hr max at 10 bar per kg. of DC First zone: 1100 C, Second zone: 90-950 C 16 18 %

64,950 20 - 22 2

US $ % Years

This was prepared from the information supplied by the GEM Forging Pvt. Ltd, 10-C Middleton row, 3rd floor, Calcutta 700 071, India. For additional technology fact sheets for tea, brick and ceramic, foundry, desiccated coconut and textile sectors, please visit http://www.serd.ait.ac.th/smi2/smi/roadmap/index.html.
SMI Newsletter, January - March 2003, Volume 5, No.1 3

Success Story - Textile Sector Installation of Photocells in Speed Frames of a Spinning Mill
Factory profile This case example pertains to a textile-spinning mill situated in Coimbatore District of Tamil Nadu, India which was keen in reducing the energy consumption. This unit was established in 1957 and is manufacturing yarn. The daily production of this unit is about 3050 kg. The unit is consuming 21,060 kWh daily, resulting in a UKG (Units per kg) of yarn production of about 6.9. During the audit, a number of energy conservation measures were identified along with their technoeconomic analysis. This case example refers to one such measure that resulted in electricity saving in the speed frames. Photocells were installed to identify the yarn breakage, and the running of pneumafil blower was discontinued resulting in a saving of 24 kWh per day. Audit findings Pneumafil blowers are used in speed frames (SIMPLEX machines). Whenever any breakage of roving occurs, the suction keeps drawing the rove till the break is detected. Then the frame is stopped and the ends are connected again. This leads to energy losses because of continuous running of pneumafil blowers.

Figure 1 Photocells installed in the speed frames Energy Efficient and Environmentally Sound Technology (E3ST) option One of the E3ST options identified is the installation of photocells in speed frames. This system uses the principle of photo sensing and brings the operation to halt whenever breakage occurs. Again after yarn adjustment, the system starts running. This will avoid the usage of pneumafil blowers. Actions taken Photocells were installed in four frames to detect the yarn breakage immediately and to stop the operation. After making the necessary yarn adjustment, the machine starts again. By this device, unnecessary running of 3 HP pneumafil blower was avoided and saving was achieved due to the stoppage of blower. At present, four frames have been modified. E3ST benefits Item Annual electrical energy consumption (kWh) due to pneumafil blower Annual CO2 emission [indirect] (tonnes) Annual savings Total investment Simple payback period Before installation 8400 2.3 Rs. 34,000 Rs. 17,000 6 months After installation Nil Nil

Financial benefit analysis

For further details contact: PSG College of Technology (See address on page 8)
4 SMI Newsletter, January - March 2003, Volume 5, No.1

Tea Sector Improvement in Withering process

Withering is principally a process of removing surface and internal moisture of freshly harvested green leaves. In addition, withering is done to get the optimum physical condition, which will allow the leaves to be rolled without breaking. Also, the withering promotes dissipation of heat generated during continuous respiration (chemical change). This process is done in an arrangement called withering trough where hot and natural air is blown by using axial flow fans. Usually, the green leaves from the tea estates are brought to factories in the afternoon and are spread on the troughs. The troughs are made of metal wire meshes with wooden support on which tea leaves are spread and the air is blown from the bottom. Withering is done at 20 35 0C depending on the climate condition. For best withering (in order to maintain high quality tea) a wet and dry bulb temperature difference of 4 0C is maintained at the trough bed. During the withering process 45% of moisture is removed. The above temperature condition for withering is maintained by providing some hot air coming out of dryers in most of the tea factories. Receiving of hot air to the withering troughs is somewhat easy as the drying room is right below the troughs, and distribution of hot air is done by using ducting systems. Eventhough these conventional systems are practised in most of the tea factories, the following difficulties and disadvantages exist which have not yet been properly addressed. Contamination of tea leaves in withering troughs by moist and dusty hot air. Uncontrollability of hot air to individual troughs. When a few troughs are in operation, more hot air is passed through the troughs and hence, it can increase the thermal damage of tea leaves. On the other hand, when all the troughs are in operation, adequate amount of hot is not received by the troughs which are at the end of the distribution line. It has been observed that around 50% of energy is wasted during the distribution of hot air from dryer room to withering troughs. It takes longer hours for withering especially in rainy days.

Considering the above reasons and growing competition for good quality tea, a tea factory at Rathnapura, Sri Lanka, with the assistance of ISB has introduced a steam radiator system for withering process, which is now in operation. At the initial stage, steam radiators were introduced for 5 troughs. This exercise was completed with comparatively low investment as there was excess steam in the existing boiler.

Figure 2 Schematic diagram of the steam radiator system for withering process

Continued on page 6.
SMI Newsletter, January - March 2003, Volume 5, No.1 5

Tea Sector
Continued from page 5. During the last two months of operation of the above troughs, the following advantages were observed. Total withering period has reduced considerably (approximately by 6 hrs) as moistureless, hot air is fed to the troughs. Withering quality has been improved due to the prevention of sudden temperature variation in hot air and prevention of excess heat. It is easy to get the required withering in wet days by adjusting the steam pressure reducing valve (PRV) to obtain the correct temperature of hot air. All the troughs are equally withered in a given time period.

For further details contact: Industrial Services Bureau of North Western Province, Sri Lanka (See address on page 8)

SMI Publications
Small and Medium scale Industries in Asia: Energy, Environment and Climate Interrelations Tea Sector The book Tea Sector is an output of the project SMI in Asia under the ARRPEEC Phase II, sponsored by Swedish International Development Cooperation Agency (Sida), during 1999-2001. This is based on research conducted on the tea sector in India, Sri Lanka and Vietnam. The highlights include: The production and operational practices of the tea process, Energy consumption and pollution generation in tea industry, Energy efficient and environmentally sound technological (E3ST) options in the tea industry and Barriers inhibiting the promotion of E 3ST in the tea sector. This book (Costing 15 US $ including mailing charges) can be ordered from: The Director, Regional Energy Resources Information Centre (RERIC), Asian Institute of Technology, PO Box 4, Klong Luang, Pathumthani 12120, Thailand Fax: + 66 2 524 5439 Email: enreric@ait.ac.th This book can be down loaded from: http://www.serd.ait.ac.th/smi2/smi2.html

This book is expected to be useful to policy personnel and government agencies involved in the tea sector, tea manufactures/associations, energy or environmental agencies, industrial organizations and researchers. A companion volume discusses the policy options to promote E3ST in the study countries.

We welcome Industries, Energy Efficient and Environmentally Sound Technology (E3ST) suppliers, consultants, NGOs, and R&D Institutions to share information on E3ST in Brick, Ceramic, Desiccated Coconut, Foundry, Tea and Textile sectors. For further details, contact the SMI in Asia Project (Address given on page 8).
6 SMI Newsletter, January - March 2003, Volume 5, No.1

Capacity Building
IEPEC: International Energy Programme Evaluation Conference 19 - 22 August 2003, Washington, USA. The theme for the 2003 Evaluation Conference is Evaluation: Meeting Diverse Needs.It will be of strong interest to evaluators, product and service designers, implementation managers, corporate and public directors and policy makers, regulators and others interested in current and future directions of energy programs, products, services and markets. For further details visit: http://www.iepec.org IAIA03: 23rd Annual Meeting of the International Association for Impact Assessment (IAIA), 17 - 20 June 2003, Marrakech, Morocco. At a time when many countries have already adopted environmental assessment (EA) procedures, and others are on the verge of doing, this event discusses about the lessons learned about EA that could be useful to developing countries, countries in transition and others. The IAIA03 conference event offers an opportunity for experts, decision makers, industry, and professionals of different visions and expertise to explore this issue. For further details contact: Bridget John, email: bridget@iaia.org ENERGY 2003: 17 - 20 August 2003, Orlando, Florida, USA. Energy 2003 is designed to help the end users to do job better by providing the details on the latest energysaving strategies and products, opportunities to network with colleagues to discuss new applications and strategies, and information from the experts on successful case studies and projects. For further details contact: Email: energy@epponline.com The 6th biennial ACEEE Conference: 29 July - 1 August, 2003, New York, USA. Participants from around the world will gather for three days to discuss technical, policy, and program issues related to increasing energy efficiency in industry. Presentations and discussions will relate to the theme Sustainability and Industry: Increasing Energy Efficiency and Reducing Emissions. Attendees will include energy decision makers from industry, equipment manufacturers, government policy makers, electric utility staff, energy consultants, leading industrial energy researchers, and academics. For details visit: http://www.aceee.org/conf/03ss/03ssindex.htm

Websites
http://cdiac.esd.ornl.gov/ This website provides access to Carbon Dioxide Information Analysis Centers (CDIACs) products and services, which include reports, databases, and their newsletter. CDIAC responds to data and information requests from users from all over the world who are concerned with the greenhouse effect and global climate change. CDIACs data holdings include records of the concentrations of carbon dioxide and other radiatively active gases in the atmosphere; the role of the terrestrial biosphere and the oceans in the biogeochemical cycles of greenhouse gases; emissions of carbon dioxide to the atmosphere; long-term climate trends; the effects of elevated carbon dioxide on vegetation; and the vulnerability of coastal areas to rising sea level. http://www.iea.org/envissu/poltech.htm This website gives the international Energy Agency (IEA) statement on the energy dimension of climate change. The International Energy Agency has been mandated by its member countries to provide analytical work on the energy dimension of climate change and the implications of the UNFCCC and its Kyoto Protocol on the energy sector. Beyond national policies and measures that help promote lower greenhouse gas emissions from energy and develop climate-friendly technology, the IEA is also working on international co-operation to help achieve greenhouse gas objectives at the lowest possible cost.
SMI Newsletter, January - March 2003, Volume 5, No.1

http://www.climateark.org This website is dedicated to promoting public policy that addresses global climate change through reductions in carbon dioxide and other emissions, renewable energy, energy conservation and ending deforestation. This website is for non-commercial, educational purposes only. http://www.climateneutral.com The Climate Neutral Network is an alliance of companies and other organizations committed to developing products and enterprises that eliminate their impacts on the earths climate. The Networks mission is to support the development of profitable Climate Neutral innovations and partnerships and to create a new marketplace in which caring for future earth is an ever more visible and valuable part of consumer and company purchasing decisions. http://www.wbcsd.ch This website gives information about the activities of The World Business Council for Sustainable Development (WBCSD) which acts as a catalyst for change toward sustainable development, and to promote the role of eco-efficiency, innovation and corporate social responsibility.

News items, articles, information on training courses, websites related to energy and environmental issues in the small and medium scale industrial sector and other correspondence can be sent to: SMI Project, School of Environment, Resources and Development, Asian Institute of Technology, PO Box 4, Klong Luang, Pathumthani 12120, Thailand Fax: +66 2 524-5439/524-5625 Email: smiasia@ait.ac.th http://www.serd.ait.ac.th/smi2/SMI/ roadmap/index.html Principal Investigators Dr. S. Kumar Prof. C. Visvanathan News Editors Prof. R. Rudramoorthy Prof. S. Balachandran Mr. R. Velavan Mr. S. Sivasubramaniam Copy Editor Mr. C. John Victor Collaborating Institutions PSG College of Technology Coimbatore 641 004, India Contact: Prof. R. Rudramoorthy Fax: (91)-422-2573833 Email: psgait@vsnl.com The Consulting Centre Cooperative Promotion Capacity Building 149, Giang Vo, Hanoi, Vietnam Contact: Mr. Ly Dinh Son Fax: (84)-4-733 - 5045 Email: cbcnedcen@hn.vnn.vn for and

Publications
Environmental Benefits through the Use of Incentives by Global Environmental Management Initiative (GEMI), 1999. This document identifies several environmental program objectives that can be achieved through the use of incentives. These program objectives range from encouraging the reduction in specified pollutants to improving the deployment of program resources within an environmental regulatory program. Specific examples are also given in this document. For further details visit: http:// www.gemi.org/IDE_004.pdf Energy and the Environment, Volume 27 by Annual Reviews, 2002, ISBN: 0-8243-2327-0 Annual Reviews has offered comprehensive, timely collections of critical reviews written by leading scientists. Annual Reviews volumes are published each year for 29 focused disciplines within the Biomedical, Physical, and Social Sciences including energy and environment. For further details visit: http://energy. annualreviews.org Sustainable Energy: Perspective for Asia by Tata Energy Research Institute, 2002. This document examines the context within which the energy sector has evolved in the Asian region, especially in the last 25 years. This work is an attempt to evaluate the perceptions and the priorities of development in the energy sector, especially the relevance of, and the impetus provided by, UNCED (the United Nations Conference on Environment and Development) in 1992. The views of eminent personalities, experts, and different stakeholders on the developments in the energy sector and their impacts on the economy, society, and the environment in the region are summarized in this document. For further details visit: http://www.teriin.org/pub/books/ wssd.htm

Newsletters
EEP Newsletter This free fortnightly newsletter publishes a summary of latest European environmental news coming from each of the thirteen magazines which are published by the members of the European Environmental Press. For further details visit: http://www.eep.org/ CDIAC Communications This electronic newsletter is published and distributed free of charge annually by the Carbon Dioxide Information Analysis Center, Environmental Sciences Division, Oak Ridge National Laboratory (ORNL). This newsletter provides details on the various information available with Carbon Dioxide Information Analysis Center and the various publications related to environment and climate change. For further details visit: cdiac.ornl.gov/newsletr/ccindex.html Greenhouse Gas Technology News This electronic half-yearly newsletter is published by the Greenhouse Gas Technology Center, An Environmental Technology Verification (ETV) Organization sponsored by the U.S. Environmental Protection Agencys Office of Research and Development. For further details visit: http://www. sri-rtp.com/Publications-Newsletters.htm IISD News IISD News is a free quarterly newsletter designed to deliver news, information and feature stories about the International Institute for Sustainable Development. For further details visit: http://www.iisd.org/publications/ publication.asp?pno=463

Center for Environmentally Sound Technology Transfer (CESTT) 109 Wanquanhe Road, Haidian District, Beijing 100089, P.R. China Contact: Mr. Shi Han Fax: (86)-10-8263-6017 Email: shihan@info.acca21.org.cn Industrial Technology Development Institute, Fuel and Energy Division Dept. of Science and Technology Gen. Santos Avenue, Taguig, Metro Manila, Philippines Contact: Dr. Alice B. Herrera Fax: (63)-2-837-3167 Email: abherrera@pacific.net.ph Industrial Services Bureau of North Western Province 141, Kandy Road, Kurunegala, Sri Lanka Contact: Mr. Gamini Senanayake Fax: (94)-37-23562 Email: gaminisn@isb.lk
For information on ARRPEEC, please contact: Prof. S.C. Bhattacharya, ARRPEEC Coordinator, Energy Field of Study, Asian Institute of Technology, PO Box 4, Klong Luang, Pathumthani 12120, Thailand. Fax:+66 2 524-5439, Email: bhatta@ait.ac.th

SMI Newsletter, January - March 2003, Volume 5, No.1