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INDUSTRIAL EE IN THE MALAYSIAN

MANUFACTURING SECTOR

(IEEMMS Project)

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PROJECT OBJECTIVE

“To promote energy efficiency improvements

in the Malaysian manufacturing sector

through the implementation of National

Energy Management Standard and

application of System Optimization”.

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FUNDING AGENCY

Global Environment Facility (GEF)

IMPLEMENTING AGENCY

UNIDO

EXECUTING AGENCY

MITI; SME Corp

PARTNERS

KeTTHA, NRE, ST, EPU, SIRIM, FMM, MIDA,

Dept of STANDARDS

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Component Outcome

1. Development of a

national industrial

energy efficiency policy

and plans

Enhanced regulatory framework

facilitating increased implementation

of EE in the industrial sector

2. Awareness creation on

energy management and

systems optimization

Widespread awareness among SMEs

and larger industries of the benefits of

energy efficiency; strong interest by

industry (and other sectors

participating in EnMS, such as

institutional and government) in energy

management, systems optimization as

well as energy efficient equipment and

services in general.

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3. Energy management

systems

A cadre of highly specialized energy

management experts from the public and

private sectors is available as a long-term

technical resource to industry and the

country.

4. Systems optimization A cadre of highly specialized systems

optimization experts from the public and

private sectors is available as a long-term

technical resource to industry and the

country.

5. Access to finance for

industrial EE improvement

SMEs and larger industries have

coordinated access to increased technical

and financial assistance for implementing

energy efficiency projects, including

system optimization

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Energy Management System

(EnMS)

Capacity Building

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The Three Components

½ day Awareness

Seminar2 day USER

Training

EXPERT

Training

Target group:

Top management

Objective:

To buy in EnMS, System Optimization (SO) and project technical assistance

Target group:

Management repr., energy managers and other personnel of enterprises

Objective:

Enable to start develop and implement EnMS

Target group:

EE consultants, ESCOs, ISO 14001 experts and others

Objective:

Equip to provide EnMS dev. & impl. TA and training to enterprises

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2-Days User

Training Preparation

Expert

Module 1

Expert

Module 2

Expert

Module 3

Expert

Exam

Outputs:

1. EnMS

Expert

Selection

2. EnMS Tools

provided

Outputs:

1. EnMS core

team members

identified

2. EnMS self-

assessment

3. Factory

selection

Outputs:

1. Participant

trained in-depth

on EnMS Planning

2. EnMS

supporting tools

provided

Outputs:

1. Participant is

trained in-depth

on EnMS Checking

& Mgmt Review

2. EnMS

supporting tools

provided

Outputs:

Qualification as

an Energy

Management

System Expert

1 month 3 Days

11/7 - 13/7

5

mths

hs

3 Days

10/12 - 12/12

3 Days

24/4-26/4/13

4

mths

3-4

mths

TIME

Outputs:

1. Energy Policy

2. Significant Energy Uses

3. Baseline

3. Energy Performance

Indicator

5. Action Plans

Outputs:

1. Training delivered &

attended

2. Operations and controls

improved.

3. EE projects/measures

implemented

4. Energy & Costs Savings

Outputs:

1. Energy Performance

checked, verified and

reported.

2. Energy performance

reviewed by top

management.

3. Decisions for next period

Outputs:

1. Participant

trained in-depth on

EnMS

Implementation &

Operation

2. EnMS supporting

tools provided

EnMS – ISO 50001 Expert Program

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Systems Optimization

Capacity Building

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UNIDO System Optimization Capacity Building Programme

(Pumps, Fans, Air Compressors and Steam)

2 day USER

Training1/2 day VENDOR

Training

EXPERT

Training

Target group:

Enterprises staff and energy service

providers

Objective:

Enable basic SO measures develop and

implement

Target group:

Local equipment vendors, suppliers, etc

Objective:

Generate support and

synergies for project.

Support reshaping of

service offerings.

Target group:

EE consultants, service providers, experts,

factory representatives and others

Objective:

Enable to provide TA for SO dev. & impl. and train

enterprises

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Benefits to Factories:

Receive assessment/report with complete set of data collected (FOC)

Great opportunity to harness potential savings measured without cost/investment in terms of expert consultation and accurate state of the art measurements (measurement tools/equipment will be provided during the training/assessment)

UNIDO has engaged world renowned International Experts for the program and their knowledge and expertise is to be shared with local engineers at the selected plant.

All cost related to the assessment will be borne by UNIDO.

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Steel Industry in UNIDO IEE Portfolio

Egypt Ecuador

South Africa

Russian Federation

Philippines

Malaysia

Al Ezz Dekheila (EZDK)

Long and flat steel products

Capacity: 5.8 mio tons per year

Production: 3 mio tons/year

Arcelormittal Saldanha Works

Hot Rolled Coil

Capacity: 1.2 mio tons/year

Production: 1.2 mio tons/year

NOVACERO

Bars, rods and solid sections of

iron and steel

Production: 100,000 tons/year

Steel Asia

Steel reinforcing bars

Production: > 1 mio tons/year

UMMC – Steel

Rolled steel

Production: ̴ 1 mio tons/year

CSC Steel

Arcelormittal Vanderbijlpark

HRC & cold rolled & coated products

Employees: 4,500

Pag-asa Steel Works

Steel reinforcing bars

Employees: > 200

Iran

Sabah Steel

Amsteel Mills, Antara Steel Mills,

Southern Steel and Pewaja Steel

Oxin Steel

Esfahan Steel

COREX

DR-Plant

Steel shop

Mills

RHF Electricity demand : 160 MW

Manpower: 548 permanent employees

Sales output: 1,2 million ton HRC/annum

Arcelormittal

Saldanha Works

Energy Efficiency Achievements 2011

Energy Management System Implemented

No. of Projects/Measures 11

Total Capital Investment (USD) 0

2011 Gross Financial Savings (USD) 9,076,000

Overall Payback Period (in years) 0

2011 Energy Savings (GWh) 79.95

Adjustments/optimization of

production operation, energy

systems optimization, fuels

switching, etc..... driven by EnMS!

Energy Savings 2011-2014

460 GWh

South Africa IEE Project

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Arcelormittal

Saldanha Works

South Africa IEE Project

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Post-Combustion Cooling Radial

Fans System Optimization

Cost Savings (2011) R 262,000

Energy Savings (2011) 622 MWh

Cost of Project 0

Kg CO2 Savings 596 tons CO2

Energy performance improvement measures

Water Cooling System Optimization

Cost Savings (2011) R 1,371,680

Energy Savings (2011) 2,839 MWh

Cost of Project 0

Kg CO2 Savings 2,719 tons CO2

LPG Consumption Optimization

Cost Savings (2011) R 52,000,000

Energy Savings (2011) 62,005 MWh

Cost of Project 0

Kg CO2 Savings 14,881 tons CO2

Ladle Heating Station system optimization

Compressed-air Systems optimization

Increased EE awareness

Etc.

Al Ezz Dekheila

Steel Company

Egypt IEE Project

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ID Energy Performance Improvement Opportunity

1 Installation of new Dry Rollers

2

Enhancing thermal insulation through:

- Using first class refractories (ceramic fibers & cast)

- Renewable of all hoppers along the tunnel furnace

- Exchange all damaged expansion joints of comustion air ducts

3 Calibration of Gas & Air valves and flowmeters

4 Gases Leak Detector

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Maintain standard Air/Fuel ratio during natural gas burning

the reheating furnace to ensure complete combustion of the

natural gas.

6Keeping good insolation of the reheating furnace body in

order to eliminate any heat dissipation from the furnace body.

Energy Efficiency Achievements 2014

Annual Energy Savings (GWh) ̴ 167

Financial Savings (USD) 7,860,400

Total Implement. Cost (USD) 5,633,300

Overall Payback Period (month) < 9

Egypt - Benchmarking of Iron and Steel Sector

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Benchmarking study based

on data collected from

participating companies

Companies that participated

in the benchmarking exercise

account for 76% of Egyptian

production

Egypt - Benchmarking of Iron and Steel Sector

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CSC Steel Sdn Bhd- first iron and steel in Malaysia obtained ISO 50001:2011 (EnMS) certification in

Malaysia.

Implemented Energy Saving Measures Air conditioning systems (more efficient operation of chillers, reset air condition room temperature, installation of

self closing doors and use of window shades or solar films)

Lighting system (Use automatic timers for switches, switch off main power of application when not in use, switch

off computer when not in use, use of energy efficient lamps and use natural lights and LEDs

Motors, belts, drives (Variable speed drives and correct sizing)

Fans and pumps (sizing, throttling and variable speed control)

Waste Heat Recovery Systems (Stack flue temperature and leakage reduction)

Compressed Air System (Correct pressure setting, leakage and proper piping design)

Earth hour (promote awareness)

Heat recovery at Color Coating Line (CCL)

Water Pump Improvement

Results Achieved – Estimated savings of RM240,000/year

Program involved: EnMS Expert Program (Round 2), Compressed Air System Expert Program

(Round 2), Pump Expert System (Round 2) and Steam Systems Expert Program

Malaysian Case Studies

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Steel Industries Sabah Sdn Bhd was founded in 1993. The Company's line of business includes the operation of

blast furnaces and steel mills.

Implemented Energy Saving Measures Tempcore Supply Pump (installation of VSD) – reduce consumption by 5%

Air Compressor (Leakage rectification and system upgrade) – reduce consumption by 5%

High Bay LED and office light replacement – reduce consumption by 50%

Awareness training

Program involved: EnMS Expert Program (Round 2) & Systems Optimization User Trainings

Malaysian Case Studies