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How much energy
is necessary to make
1 ton of building
materials?
Lessons learned from
7 energy audits
in Ukrainian non-metal construction
materials plants
Published by:
Advisory Services for Energy Efficiency in Companies
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Commissioned by:
German Federal Ministry for Economic Cooperation and Development (BMZ)
Registered offices:
16b Antonovycha St., 01004, Kyiv, Ukraine
Т.: +380 44 594 07 60
https://www.giz.de/ukraine-ua
Overall Project Management: Ricardo Külheim
Concept and text: Stefan Landauer
Data analysis: Pavlo Pertko - ENERGOMANAGEMENT PRO LLC
With contribution by: Svitlana Chebotaryova, Alina Rekrutiak, Hanna Bodnar, Anatolii Cherniavskiy
Design: Kateryna Yashyna
Image credits: https://www.shutterstock.com/
GIZ is responsible for the content of this publication.
© GIZ 2020
2
© GIZ Ukraine 2020, outline non-metal construction materials
3
Contents
What is this handout about?
GIZ work in Ukraine
What is the Advisory Services for Energy Efficiency
in Companies project?
Challenging economic environment and its impact on energy
efficiency
What sources of energy are used and in which quantity?
Energy use in the non-metal construction materials plants
What subsections of the production consume the most energy?
How much money is spent on energy in non-metal construction
materials plants?
What are energy efficiency measures and where is the largest
savings potential?
Relevant energy efficiency measures
What is the CO2eq reduction/investment ratio through the
implementation of energy efficiency measures?
Energy consumption, potential savings
How much energy is used to produce 1 ton of building materials?
Take away messages
04
05
06
09
10
12
14
15
16
22
26
27
28
30
© GIZ Ukraine 2020, outline non-metal construction materials
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What is this handout about?
Dear reader,
The non-metal building material-mak-
ing industry is an important component
in the economy of any country. It makes
the resource base for the national
building sector and has a material
impact on growth rates in other econo-
my sectors. The industry covers
production of cement, bricks, other
walling materials, also ceramic tiles,
paving slabs, concrete and concrete
frames, thermal insulation and roofing
materials and so on. The production is
not too capital-intensive and has good
access to basic raw materials. This
short outline provides insight into the
energy consumption, energy costs,
energy- saving potential, specific ener-
gy-saving measures, and the green-
house gas impact of the non-metal
construction material-making industry
in Ukraine. It reports the results of a
series of energy audits carried out by
the Deutsche Gesellschaft für Interna-
tional Zusammenarbeit (GIZ) GmbH and
demonstrates the impact of GIZ
projects currently being implemented
within the energy efficiency and climate
sector in Ukraine. Therefore, the
content of this short report will be of
interest to CEOs, company owners,
managers, and investors in the
Ukrainian non-metal construction
material-making industry. Relevant to
all stakeholders, this outline is not
targeted at energy efficiency experts
only; hence, the use of technical jargon
has been minimized, and complex tech-
nical issues are simplified.
© GIZ Ukraine 2020, outline non-metal construction materials
5
The Deutsche Gesellschaft für Interna-
tionale Zusammenarbeit (GIZ) GmbH is a
German development agency. Active in
120 countries around the world, GIZ is a
provider of international cooperation
services for sustainable development
and international education work and
strives towards a more sustainable
future. GIZ has over 50 years of experi-
ence in a wide variety of areas, including
economic development and employ-
ment, energy and the environment, and
peace and security. GIZ’s diverse exper-
tise is in high demand around the globe
and continues to collaborate with the
German Government, European Union
institutions, the United Nations, the
private sector and governments of other
countries. Besides that, GIZ collaborates
with businesses, civic society actors and
GIZ work in Ukraine
research institutions, fostering interac-
tion between development policy and
other policy fields and areas of activity.
The German Federal Ministry for
Economic Cooperation and Develop-
ment (BMZ) is GIZ’s main commissioning
party.
GIZ has been assisting Ukraine since 1993
in its transition to a democratic state
based on the rule of law. Currently, 352
national and 53 international employees
and 6 development workers are working
in the office and on projects. Located in
Kyiv, the country office opened in 2009.
The Ukrainian-German cooperation
currently focuses on good governance,
energy efficiency and sustainable
economic development.
© GIZ Ukraine 2020, outline non-metal construction materials
6
Economics is the principal driver for
industry and, subsequently, the largest
incentive for increasing energy efficiency is
to lower total operating costs. Fortunately,
there are numerous opportunities for
increasing efficiency in small- to
medium-sized companies. Studies have
shown that up to 35% of energy
consumption within the entire Ukrainian
industry could be reduced in the near term
throughcost-effectiveefficiencymeasures.
The Federal Ministry for Economic
Cooperation and Development of
Germany (BMZ) pledged its support for
the Ministry for Development of
Economy, Trade and Agriculture of
Ukraine (MDETA) and has since imple-
What is the Advisory Services for Energy Efficiency
in Companies project?
mented a range of measures to bolster
means for improving energy efficiency.
One of them is the project Advisory
Services for Energy Efficiency in
Companies that GIZ has been
implementing since 2017, on behalf of the
German Government.
The project provides direct technical
support to Ukrainian industries, which
includes conducting energy audits and
developing pilot projects, which are
specifically tailored to the needs of
local industries. The results of these
energy audits enable Ukrainian
industries to develop technically and
economically sound energy efficiency
investment measures.
SinceOctober2018,ateamofnationaland
international certified energy auditors has
assessed the level of energy efficiency of
65 industries according to ISO standard
50002, Part 2. This audit phase was
completed in July 2019, with a focus on
industrial sectors such as bakeries, dairy
production, and non-metallic building
materials. As a result, 20 companies were
selected to be audited for investment
gradeaccordingtoISO50002type3,which
was concluded in March 2020.
were audited according to
ISO standard 50002
65 industries
© GIZ Ukraine 2020, outline non-metal construction materials
7
The current outline is a by-product of
these activities, taking advantage of
assessing 7 non-metal construction
material-manufacturing plants, iden-
tifying their patterns in the energy use
to determine promising energy-saving
measures. The outline reveals typical
consumption profiles as a first approx-
imation, which contributes to a better
understanding of energy efficiency in
the Ukrainian industrial sectors. In
turn, this provides greater comparabil-
ity amongst sectors. Subsequently,
this document has the potential to
stimulate and encourage deci-
sion-makers to put energy efficiency
in practice.
© GIZ Ukraine 2020, outline non-metal construction materials
8
What is an energy
audit according
ISO 50002?
What is an investment-grade audit?
Owners or managers of industrial parks
and factories are not always aware of
the possibilities for energy efficiency
improvements. Conducting an energy
audit is the first step to investigate the
opportunities for energy savings, priori-
tizing projects, tracking progress, and
making system adjustments after
investments.
ISO 50002 specifies the process require-
ments for carrying out a comprehen-
sive energy audit. It is applicable to all
types of establishments and organiza-
tions, and all forms of energy and
energy use. This standard also specifies
the principles of carrying out energy
audits, requirements for the common
processes during energy audits.
An investment-grade audit is the most
detailed energy audit. It analyzes the
financial aspects of energy savings and
the return on investment from potential
changes or upgrades. A building opera-
tor typically uses the investment-grade
audit as a budgeting tool when planning
facility upgrades.
© GIZ Ukraine 2020, outline non-metal construction materials
9
Production and distribution volumes in the
industry are substantially linked to new
development and modernisation of existing
housing. Given the building sector stagna-
tion in 2018 and 2019, the data from the
All-UkrainianAssociationofBuildingMaterial
Manufacturers shows a certain decline in
production of building material vs 2017. E. g.,
ceramic brick production dropped by 11%
and of concrete, cement and related
products,by7%in2018;however,drymortar
production grew by 13% in 2018 and has
continued with the trend ever since. Green
construction and national programmes
promoting energy efficiency measures in
public and residential buildings remain
important drivers of industry development
andrequireproductionofenergyefficient
Challenging economic environment and its impact on
energy efficiency
buildingmaterials.
According to the State Statistics Service of
Ukraine, there are around 9,000 companies
in the sector. Physically depreciated and
out-of-dateplantandequipmentatmostof
themleadstohighlevelsofenergy-intensity
of production. Big manufacturers have
troubles with maintaining their production
capacitiesatproperlevelsandcompensate
fixedcostsofelectricityandheatconsump-
tionattheirofficeandstoragepremises,still
more with absent demand for their
products.
Innovativetechnologiesandenergyefficien-
cy measures are necessary to make enter-
prises more competitive. The brochure
presents some specific measures aimed at
reducingenergyintensityofproduction.
© GIZ Ukraine 2020, outline non-metal construction materials
10
Carbon dioxide (CO2
) is a colorless gas formed during the combustion of any
material containing carbon and important greenhouse gas.
Carbon dioxide equivalent CO2
eq is a measure used to compare the emis-
sions from various greenhouse gases based upon their global warming
potential.
For example, the global warming potential for methane over 100 years is 21.
This means that emissions of one metric ton of methane equivalent to emis-
sions of 21 metric tons of carbon dioxide.
What sources of energy are used and in which quantity?
The 7 assessed industries consumed
between 2 and 65.1 GWh of energy in
2018. The inclusion of both large indus-
tries and smaller non-metal construc-
tion material manufacturers in the
auditing process accounts for the strik-
ing difference between the smallest
and largest value.
The majority of analysed enterprises
consume from 50.1 to 65.1 GWh/year.
There is a separate group of small
consumers, the two enterprises taking
2 and 10 GWh/year respectively. The
annual average has been calculated
without taking into account the two
latter enterprises and found to stand at
56.5 GWh/year (please refer to Fig. 1).
© GIZ Ukraine 2020, outline non-metal construction materials
11
Figure 1, Electricity, natural gas, and coal consumption by
each production facility in GWh and emissions in thou-
sands of tCO2
eq in 2018
Gigawatt hours, abbreviated as GWh, is a unit of energy repre-
senting one billion (1 000 000 000) watt-hours and is equivalent
to one million kilowatt-hours.
Electricity GWh/year Coal GWh/year
Natural gas GWh/year
Emissions in thousands tCO2
eq/year Total consumption GWh/year
As seen in figure one, each bar stands for an individual production site, revealing its specific annual consumption of electricity (blue), natural gas (red), and
coal (yellow) in GWh in 2018. The total energy consumption (black) and carbon dioxide emission in thousands of tons of carbon dioxide is highlighted in green.
1
10.3
0.5
10.8
4.0
2
4.4
45.7
50.1
42.6
3
48.7
5.4
54.1
14.8
4
50.0
8.9
59.0
18.3
5
47.0
7.5
54.5
16.4
6
1.9
0.1
2.0
0.5
7
9.4
55.7
65.1
52.7
Average
31.9
24.6
56.5
21.3
What sources of energy are used and in which quantity?
© GIZ Ukraine 2020, outline non-metal construction materials
12
The next pie chart reveals the share of
the main energy sources represented
by electricity and natural gas. The
chart does not include coal as this
carrier was only used by one
enterprise as a natural gas alternative
in 2018.
As Figure 2 shows, the non-metal
construction materials industry is highly
dependent on natural gas as the prima-
ry energy carrier (56.7%) with electricity
trailing well behind (43.3%). This is due to
the considerable use of natural gas in
production processes, e. g., for lining,
Figure 2. Shares of electricity and natural
gas in 2018
Energy use in the non-metal construction materials plants
coking, or drying. Other natural gas
consuming processes are steam gener-
ation, heating, hot water supply for
business needs, etc. Coal is used as a
natural gas alternative and therefore
has not been included in Fig. 2.
Electricity consumption
Natural gas consumption
43,3%
56,7%
© GIZ Ukraine 2020, outline non-metal construction materials
13
Energy use in the non-metal construction materials plants
Figure 3. Energy consumption in 2018
shares among production processes,
infrastructure, and losses
Energy losses occur throughout
the energy supply and distribution
system. Energy is lost in power
generation and steam systems,
both off-site at the utility and
on-site within the plant boundary,
due to equipment inefficiency and
mechanical and thermal limita-
tions. Energy is lost in distribution
and transmission systems carry-
ing energy to the plant and within
the plant boundaries. Losses also
occur in energy conversion sys-
tems (e.g. heat exchangers, pro-
cess heaters, pumps, motors)
where efficiencies are thermally
or mechanically limited by materi-
als of construction and equipment
design.
Chart three indicates how much
energy is consumed by a typical
non-metal construction materials
producing plant for production, heat-
ing, and hot water supply purposes. As
it is seen, 84.1% of the energy is
consumed by the production process-
es with the heating and hot water
supply systems using about 3.5% and
the remaining 12.4% lost.
Energy consumption for heating and hot
water supply (HWS)
Energy consumption in production
processes
Energy losses
3,5%
84,1%
12,4%
© GIZ Ukraine 2020, outline non-metal construction materials
38.1%
13.9%
14
Whatsubsectionsoftheproductionconsumethemostenergy?
0
On average, the process of mixing
consumes 43.6% of electricity, cranes
- 15.4%, furnaces and drying kilns -
13.9%, other consumers - 27.1%, as
indicated in figure 4. Maximal and
minimal values of electricity consump-
tion are found as numeric values. It
should be noted that some production
equipment had to be included into the
"other consumers" category as it was
not possible to separate it due to the
lack of technical metering systems.
Electricity losses have been included
here, too.
Figure 5 shows the main consumer
groups of natural gas used mostly for
production purposes (furnaces, drying
kilns, etc.), heating, and hot water
supply. The group Other сonsumers
Figure 4. What are the relevant users
of electricity?
Figure 5. What are the relevant users
of natural gas (coal)?
Total consumption of electricity/
natural gas and/or coal (average).
Minimum values Maximum values
25%
50%
75%
100%
90%
66%
78%
34%
7%
3%
18%
15%
12%
Furnaces
and dryers
Heating Others
0
20%
40%
60%
20,2%
10.6%
45.8%
20.9%
15.4%
11.5%
32.2%
27.1%
22.2%
Furnaces and
dryers
Mixing Cranes Others
mostly includes those that could not
be specified, plus losses. The average
consumption for furnaces and drying
kilns accounts for 78%; heating and
hot water supply take 7%; other
consumers (losses included) consume
15%. Furnaces and drying kilns have
been included in both charts because
of some of them using electricity and
others, natural gas.
43.6%
© GIZ Ukraine 2020, outline non-metal construction materials
15
Howmuchmoney isspent onenergyinnon-metalconstructionmaterialsplants?
Energy costs depend upon the amount
of energy consumed, whilst the
prevailing energy price scale and fixed
costs for the supply installation are
subject to fluctuations over time.
Typical purchasing prices on electricity
and natural gas per consumed MWh
for the years 2016 to 2019 are
highlighted in table one.
While for electricity the average price
per MWh had increased from 2100 UAH
Figure 6. Purchase costs for electricity and
natural gas in 2018 in non-metal construction
materials plants
in 2016 steadily to 2460 UAH in 2019, the
price for natural gas dropped in 2018
from 1220 UAH to 690 UAH in 2019.
Figure 6. shows the total and the share
between costs spent on electricity and
natural gas by a typical plant in 2018.
That year 28.5 million UAH (60,2%
energy costs) were spent on electricity
and 18.9 million UAH (39,8%) were used
to pay for natural gas.
Purchase price of electricity
Purchase price of natural gas
60,2%
(28.5 million
UAH)
39,8%
(8.9 million
UAH)
Table 1, Costs of
energy from 2016 to
2019 in UAH/MWh
* The price of natural gas has
been reduced due to
amendments by the Cabinet of
Ministers of Ukraine # 2931
1.https://zakon.rada.gov.ua/law
s/show/485-2019-%D0%BF.
Electricity
Year Natural gas
2100
2016 690
2180
2017 1030
2460
2018 1220
2460
2019 690*
Coal
750
800
896
893
© GIZ Ukraine 2020, outline non-metal construction materials
16
What are energy-efficiency measures and where
is the largest savings potential?
Energy Efficiency Measures (EEMs)
are energy-using appliance, equip-
ment, control system, or practice
whose implementation results in
reduced energy use while main-
taining a comparable or higher
level of service. EEMs decrease the
amount of energy needed to pro-
vide the same level of comfort or
utility (e.g. a heating or cooling
system that provides the same
comfort with less fuel or electricity;
a boiler of comparable size and
features that uses less gas).
To manage the diversity of potential EEMs, we classified them into the following subgroups of consumers:
2 Heat generation and
distribution
3 Compressed air
4 Electrical
devices
5 Ventilation and
air-conditioning
6 Lighting
7 Production
processes
1 Electricity generation
and supply
© GIZ Ukraine 2020, outline non-metal construction materials
17
What are the potential annual energy savings?
Figure 7. Respective energy saving areas in the sector
The following figure shows potential annual
energy savings in MWh arranged in different
groups of consumers as an average of the 7
assessed industry plants. The most relevant
consumer groups in regard to potential
savingsareledbyalargemarginwith(663
MWH/year) of heat generation and distribu-
tion, followed by electricity generation and
supply(452),compressedair(315),production
processes(312),ventilationandair-condition-
ing (294), and electric devices (207). Lighting
takesthelastplace(11).
663
315
207
294
11
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning
Lighting
Production processes 312
Electricity generation
and supply 452
© GIZ Ukraine 2020, outline non-metal construction materials
18
Whataretherelevantareasofcostsavingsthe
non-metalconstructionmaterialsindustry?
The next chart indicates potential
yearly cost savings, achieved when
implementing EEMs. Due to energy
costs being directly related to energy
consumption and places in which the
most energy losses are sustained, the
ranking is led by heat generation and
Figure 8. What are the relevant areas
of energy cost savings in the
non-metal construction materials
industry?
1002
256
308
466
54
382
581
distribution (1,002 thousand UAH/year)
followed by electricity generation and
supply (581), ventilation and air condi-
tioning (466). Next are the production
processes (382), electric devices (308),
compressed air (256) and again lighting
takes the last place (54).
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning
Lighting
Production processes
Electricity generation
and supply
© GIZ Ukraine 2020, outline non-metal construction materials
19
What are the investment opportunities
for implementing proposed energy
saving measures?
Figure 9. presents the potential
investment opportunities for EEMs within
the energy audit for each consumer
subgroup.
The consumer group comprising heat
generation and distribution (1,195 UAH)
leads by the figure of total required
investments; it is followed by ventilation
and air conditioning (420), electricity
generation and supply (375), electric
devices (364), production processes (316),
compressed air (103) and lighting (24).
Figure 9. What are the investment opportunities for implementing proposed
energy saving measures?
1195
103
364
420
24
316
375
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning
Lighting
Production processes
Electricity generation
and supply
© GIZ Ukraine 2020, outline non-metal construction materials
Human-induced warming reached
approximately 1°C (likely between
0.8°C and 1.2°C) above pre-indus-
trial levels in 2017, increasing at
0.2°C (likely between 0.1°C and
0.3°C) per decade (high confi-
dence).1
Global warming has brought
about possibly irreversible
alterations to Earth's geologi-
cal, biological and ecological
systems. These changes have
led to the emergence of large-
scale environmental hazards
to human health, such as
extreme weather, ozone deple-
tion, increased danger of wild-
land fires, loss of biodiversity,
stresses to food-producing
systems, and the global spread
of infectious diseases. In addi-
tion, climate changes are
estimated to cause over
150,000 deaths annually.2
20
How can your industry contribute to mitigating climate change?
The implementation of energy
efficiency measures will strengthen
your competitiveness as it reduces
your operational costs. In the same
breath, it addresses another, all over-
laying and pressing challenge: Climate
change.
The rise in global average tem-
perature is attributed to an increase in
greenhouse gas emissions. There is a
link between global temperatures,
greenhouse gas concentrations –
especially CO2
– and its emission due
to the use of fossil energy sources in
industries.
1. Global Warming of 1.5 ºC, IPCC, March 2020,
https://www.ipcc.ch/sr15/
2. Effects of global warming on humans, Wikipedia,
March 2020,
https://en.wikipedia.org/wiki/Effects_of_global_w
arming_on_humans
© GIZ Ukraine 2020, outline non-metal construction materials
21
How can your industry contribute to mitigating climate change?
Figure 10. Emission reductions of tCO2
eq/year, implementing energy saving-measures
recommended in the energy audit report
Figure 10 shows the potential tCO2
eq
reduction if the proposed energy-saving
measures were implemented in a typical
non-metal construction material produc-
ing plant. The most significant potentials
165
206
189
96
10
102
83
to reduce CO2
eq emission are realized
through the implementation of EEMs in
compressed air systems (206 tCO2
eq/-
year), electric motors (189), boiler house
and heat distribution (165), and produc-
tion processes (102) followed by heating,
ventilation and air conditioning (96),
electricity generation and distribution
(83), and lighting (10).
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning
Lighting
Production processes
Electricity generation
and supply
© GIZ Ukraine 2020, outline non-metal construction materials
Relevant energy efficiency measures
Every industrial non-metal construc-
tion materials manufactory is unique
and requires tailored approaches to
improve its energy efficiency. Never-
theless, the assessment of the 7
non-metal construction materials
producing plants revealed clear
patterns regarding promising
improvements. The most relevant
energy-saving measures in terms of
investment opportunities, energy
savings, costs savings, payback period,
and savings of tCO2
eq are presented in
Table 2.
22
© GIZ Ukraine 2020, outline non-metal construction materials
23
Table 2
Сapital
expenditures
thousand UAH
Savings
thousand UAH
Energy savings
MWh average
Simple payback
period years
Savings
tCO2
eq*
Thermal insulation of
pipelines at boiler house
1.6 1.9 5.5 0.9 1.1
Decentralization of
compressed air system 89 38 66 1.0 60
Heat recovery from
compressors 143 46 443 2.7 120
Thermal insulation of
buildings 277 107 69 3.6 14
Modernization of the
lighting system 24 27 11 1.3 10
Thermal insulation of
production equipment 265 306 333 1.3 75
Optimization of air
recirculation in tunnel drying
furnaces
1550 1387 477 1.0 126
Typical EEMs in in the non-metal construction materials industry
* Emission factor per 1 MWh of electricity - 0.912 tCO2
eq; per 1 MWh of natural gas - 0.202 tCO2
eq; per 1 MWh of coal- 0.354 tCO2
eq.
https://publications.jrc.ec.europa.eu/repository/bitstream/JRC90405/part%20ii%20ru%20new%20pubsy%20.pdf
© GIZ Ukraine 2020, outline non-metal construction materials
Table 3. Energy efficiency measures developed in the framework of energy audits, stratified by cost payback period
24
As it is seen from Table 3, a considerable
proportion of suggested EEMs has a
repayment period of up to two years.
of the energy savings can be
reached by implementing
energy-saving measures with
a simple cost recovery period
below 2 years
82.6%
< 2 years
2 to 5 years
> 5 years
Number of EEMs
Simple Payback
period
Energy Savings
MWh/year
Share of Energy
savings
Emission reduction
tCO2
eq
4-5 1,705 82.6% 623
1 143 6.9% 30
0-1 217 10.5% 46
© GIZ Ukraine 2020, outline non-metal construction materials
In a typical non-metal building materi-
als production, the implementation of
three to four energy saving measures
with investment costs of below 60,000
UAH each would contribute to 17.8%
total potential energy savings identi-
fied during the energy audit. One to
three measures with investment cost
from 60,000 UAH to 300,000 UAH each
would bring a potential saving of 7.3%
while two to three measures with
investment cost in excess of 300,000
UAH each could save 74.9% ener-
gy-saving potential.
Table 4. Energy-saving measures
developed in the context of
cost-based energy audits
25
EEM with investment cost < 60,000 UAH
EEM with investment cost from 60,000 – 300,000 UAH
EEM with investment cost > 300,000 UAH
Number of
EEMs
Energy
Savings
MWh/year
Share
Energy
savings
Emission
reduction
tCO2
eq
EEM 3-4 367.3 17.8% 240.2
Electricity 0-1 69.4 3.4% 77.7
Natural Gas (Coal) 2-3 298.0 14.4% 162.5
1-2 151.8 7.3% 135.4
0-1 102.9 5.0% 93.8
0-1 48.9 2.4% 41.5
2-3 1546.4 74.9% 324.1
0-1 3.0 0.2% 2.7
1-2 1543.4 74.7% 321.4
© GIZ Ukraine 2020, outline non-metal construction materials
EEM
Electricity
Natural Gas (Coal)
EEM
Electricity
Natural Gas (Coal)
Or, in other words, what measures
have the greatest impact and lead to
the highest reduction of greenhouse
gas emissions in relation to specific
investment?
Recovery of heat from compressors
(840g CO2
eq/year per 1 UAH invested)
is the most promising emission-reduc-
ing measure; among other potential
measures are: insulation of pipes at
boiler plants (677), compressor equip-
ment decentralization and lighting
modernisation (439 each), thermal
insulation of production equipment
(282), optimisation of air recirculation
in tunnel drying ovens (81) and thermal
modernisation of premises (51).
What is the CO2
eq reduction/investment
ratio through the implementation of EEMs?
26
Figure 11. Reduction emission grams of CO2
eq/year and invested UAH
Insulation of pipes at boiler
house 677
Decentralization compressed
air system 439
Heat recovery from
compressors 840
Thermal modernization of
building 51
Optimization of air recircula-
tion in tunnel drying tunnel
drying furnaces
81
Lighting modernization
439
Thermal insulation of produc-
tion equipment 282
© GIZ Ukraine 2020, outline non-metal construction materials
Energy consumption, potential savings
The figure above shows the proportions
among energy consumption and the
potential savings if the proposed ener-
gy-saving measures were implemented.
Theenterprisesofthenon-metalbuilding
material industry consume from 2 to 65.1
27
Typical consumption, GWh/year Saving through implementation of
suggested measures, GWh/year
Potential savings, GWh/year
Figure 12. What are typical consumptions,
potential savings, and savings through the
implementation of suggested measures?
1 2 3 4 5 6 7 Average
GWh/year. The average consumption
stands at 56.5 GWh/year. The average
consumption rate has been calculated
without regard to enterprises consuming
less than 50.1 GWh/year. The total energy
saving potential averaging to 13.5 GWh/-
10.8
3.2 3.8
50.1
1.3
12.5
54.1
3.1
13.5
59.0
3.1
14.7
54.5
1.7
13.6
2.0
0.44 0.5
65.1
0.1
13.0
56.5
1.82
13.5
© GIZ Ukraine 2020, outline non-metal construction materials
year has been marked in yellow, while
energy-savings attainable with imple-
mentation of the measures suggested in
energy audit reports (1.82 GWh/year
average) have been coded in red.
Examples of EnPIs are energy
consumption per time, energy con-
sumption per unit of production, and
multi-variable models.
The values presented in Fig. 13 should
be construed as a rough reference not
directly comparable due to the
different product range, product mix
and production processes in the
industry. Still, they can serve as
stimulus for corporate managers to
develop their own specific set of EnPIs.
How much energy is used to produce 1 ton of building materials?
28
To answer the question, we will need a
definition from DSTU ISO 50001:2018,
namely, the one of energy
performance.
According to the ISO 50001 standard,
“energy performance is the measur-
able result related to energy efficien-
cy, energy use, and energy consump-
tion.” The energy management sys-
tem performance can be measured
using Key Performance Indicators
(EnPIs). “Energy performance indica-
tor is a quantitative value or measure
of energy performance, as defined by
theorganization.”Itisimportanttoset
appropriate EnPIs for monitoring and
measuring the energy performance
because they show how well the
system is functioning.
© GIZ Ukraine 2020, outline non-metal construction materials
How much energy is used to produce 1 ton of building materials?
The next chart indicates the energy consumption per construction materials produced.
Figure 13. Energy consumption in kWh
per 1 ton of non-metal constuction
materials produced (2018).
29
In 2018, the specific energy consumption of the seven assessed plants
ranged from 44 to 467 kWh/ton with an average of 235 kWh/ton.
100
200
300
400
500
84
44
300
178
467
223
350
235
1 2 3 4 5 6 7
0
© GIZ Ukraine 2020, outline non-metal construction materials
Take away messages
30
- The total annual energy consump-
tion of the 7 assessed non-metal
construction material producing
plants in 2018 ranged from 2.0 to 65.1
GWh/year with the average value of
56.5 GWh/year.
The non-metal const-
ruction material industry
highly depends on natural
gas as energy source, with
56.7% of energy coming
from gas as opposed to
43.3%comingfromelectric-
ity.
The main electricity consumers
are: process of mixing (43.6%); furnac-
es and drying kilns (13.9%); cranes
(15.4%); other equipment (27.1%). The
other consumers mostly include those
that could not be specified, plus elec-
tricity losses.
- While for electricity the average
price per MWh increased from 2100
UAH in 2016 steadily to 2460 UAH in
2019, the price for natural gas dropped
from 1220 UAH in 2018 to 690 UAH in
2019.
A typical non-metal construc-
tion material producing plant
spent in 2018 28.5 million UAH
Potential annual cost savings with
suggested EEMs based on energy
auditresultsare: heatgenerationand
Consumer groups promising in
terms of energy saving include:
heat generation and distribution
(663 MWh/year) followed by elec-
tricity generation and supply
(452), compressed air (315), pro-
duction processes (312), ventila-
tion, and air conditioning (294),
and electric drives (28). Lighting
ranks the last (11).
- 84.1% of the energy
consumption can be asso-
ciated with the production
processes. The heating
systems and hot water
supply take about 3.5%
and the remaining 12.4%
are counted as losses.
The principal consumers
of natural gas and coal are:
furnaces and drying kilns
(78%); heating and hot water
supply (7%); other consum-
ers, incl. losses (15%).
43.3%
56.7%
84.1%
12.4%
3.5%
78%
7%
15%
60.2 39.8
%
29.4 20 14 13 9
14 0.5
%
© GIZ Ukraine 2020, outline non-metal construction materials
(60.2% of the energy costs) on
electricity, and 18.9 million UAH
(39.8%) on natural gas. Cost of coal
has not been included as it was
only used by one enterprise as a
natural gas alternative.
31
82.6% of energy savings can
be reached by implementing
energy-saving measures with a
payback period of less than 2
years.
In 2018, the specific energy
consumption of production process-
es at the seven assessed plants
ranged from 44 to 467 kWh/ton
with an average of 235 kWh/ton.
In a typical non-metal building
materials production, the implemen-
tation of three to four energy saving
measures with investment costs of
below 60,000 UAH each would
contribute to 17.8% total potential
energy savings identified during the
energy audit. One to three measures
with investment cost from 60,000
UAH to 300,000 UAH each would
bring a potential saving of 7.3%
while two to three measures with
investment cost in excess of
300,000 UAH each could save 74.9%
energy-saving potential.
Energyefficiencymeasurespromis-
ing as per their repayment period
include:thermalinsulationofpipelinesat
boiler plants (costs recovered in 0.9
years), compressor equipment decen-
tralization, and optimization of air recir-
culationintunneldryingfurnaces(1).
82.6%
According to the total amount of
investments, EEMs are distributed
asfollows:heat generation and distri-
bution (1,195 UAH), heating, ventilation
and air conditioning (420), electricity
generation and distribution (375), elec-
tric motors (364), production process-
es (316), compressed air systems (103)
and lighting (24).
33 19 15 13 10 8 2
%
43 15 13 13 11 4 1
%
24 22 19 12 10
11 1
%
74.9 17.8 7.3
%
© GIZ Ukraine 2020, outline non-metal construction materials
distribution (1,002 thousand UAH/year)
followed by electricity generation and
supply (581), and ventilation, and ventila-
tion and air-conditioning (466). Next are
the production processes (382), electric
motors (308), compressed air systems
(256)withlightingbeingonthelastplace
again(54).
Significant potentials to reduce
tCO2eq emissioncan beachieved
through the implementation of
energy efficiency measures in the
compressed air systems (206
tCO2eq/year), electric motors (189),
boiler houses and heat distribution
(165) and production processes (102)
followed by heating, ventilation and air
conditioning (96), electricity generation
and distribution (83) and lighting (10).
A small selection of energy-saving actions
1 Turn-off campaigns for conveyors
(optimization of conveyor operation).
2
Optimized operation procedures for
main equipment (e.g., furnaces,
drying kilns, mills, mixers, cranes).
3
Compressed air management
practices.
4
More efficient air compressors
including variable speed drive units.
5
Surveying of compressed air
systems to identify and
eliminate leaks.
6
Heat recovery from production
equipment.
7
High-efficiency lighting
applications – the installation of T5
fluorescent high-frequency (or
LED) systems in production areas.
8
Occupancy control of lights in
lower use areas such as offices,
meeting rooms, stores, and plant
rooms.
9
Energy performance monitoring
and targeting programs.
10
Improved insulation of the main
production equipment (like
furnaces and drying kilns).
11
Reducing the amount of air entering
dispatch areas – by improving seals
and air curtains.
12
Space heating control
improvements – office wet systems
temperature compensation and
boiler optimization; process area
convector heater advanced controls
for convection heaters in the
production areas.
13
Using frequency-controlled
actuators (FCAs).
14 Improved insulation of heat
distribution lines.
15
Energy-saving and energy efficiency
awareness-raising campaigns for
the staff and other stakeholders.

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How much energy is necessary to make 1 ton of building materials?

  • 1. How much energy is necessary to make 1 ton of building materials? Lessons learned from 7 energy audits in Ukrainian non-metal construction materials plants
  • 2. Published by: Advisory Services for Energy Efficiency in Companies Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ) Registered offices: 16b Antonovycha St., 01004, Kyiv, Ukraine Т.: +380 44 594 07 60 https://www.giz.de/ukraine-ua Overall Project Management: Ricardo Külheim Concept and text: Stefan Landauer Data analysis: Pavlo Pertko - ENERGOMANAGEMENT PRO LLC With contribution by: Svitlana Chebotaryova, Alina Rekrutiak, Hanna Bodnar, Anatolii Cherniavskiy Design: Kateryna Yashyna Image credits: https://www.shutterstock.com/ GIZ is responsible for the content of this publication. © GIZ 2020 2 © GIZ Ukraine 2020, outline non-metal construction materials
  • 3. 3 Contents What is this handout about? GIZ work in Ukraine What is the Advisory Services for Energy Efficiency in Companies project? Challenging economic environment and its impact on energy efficiency What sources of energy are used and in which quantity? Energy use in the non-metal construction materials plants What subsections of the production consume the most energy? How much money is spent on energy in non-metal construction materials plants? What are energy efficiency measures and where is the largest savings potential? Relevant energy efficiency measures What is the CO2eq reduction/investment ratio through the implementation of energy efficiency measures? Energy consumption, potential savings How much energy is used to produce 1 ton of building materials? Take away messages 04 05 06 09 10 12 14 15 16 22 26 27 28 30 © GIZ Ukraine 2020, outline non-metal construction materials
  • 4. 4 What is this handout about? Dear reader, The non-metal building material-mak- ing industry is an important component in the economy of any country. It makes the resource base for the national building sector and has a material impact on growth rates in other econo- my sectors. The industry covers production of cement, bricks, other walling materials, also ceramic tiles, paving slabs, concrete and concrete frames, thermal insulation and roofing materials and so on. The production is not too capital-intensive and has good access to basic raw materials. This short outline provides insight into the energy consumption, energy costs, energy- saving potential, specific ener- gy-saving measures, and the green- house gas impact of the non-metal construction material-making industry in Ukraine. It reports the results of a series of energy audits carried out by the Deutsche Gesellschaft für Interna- tional Zusammenarbeit (GIZ) GmbH and demonstrates the impact of GIZ projects currently being implemented within the energy efficiency and climate sector in Ukraine. Therefore, the content of this short report will be of interest to CEOs, company owners, managers, and investors in the Ukrainian non-metal construction material-making industry. Relevant to all stakeholders, this outline is not targeted at energy efficiency experts only; hence, the use of technical jargon has been minimized, and complex tech- nical issues are simplified. © GIZ Ukraine 2020, outline non-metal construction materials
  • 5. 5 The Deutsche Gesellschaft für Interna- tionale Zusammenarbeit (GIZ) GmbH is a German development agency. Active in 120 countries around the world, GIZ is a provider of international cooperation services for sustainable development and international education work and strives towards a more sustainable future. GIZ has over 50 years of experi- ence in a wide variety of areas, including economic development and employ- ment, energy and the environment, and peace and security. GIZ’s diverse exper- tise is in high demand around the globe and continues to collaborate with the German Government, European Union institutions, the United Nations, the private sector and governments of other countries. Besides that, GIZ collaborates with businesses, civic society actors and GIZ work in Ukraine research institutions, fostering interac- tion between development policy and other policy fields and areas of activity. The German Federal Ministry for Economic Cooperation and Develop- ment (BMZ) is GIZ’s main commissioning party. GIZ has been assisting Ukraine since 1993 in its transition to a democratic state based on the rule of law. Currently, 352 national and 53 international employees and 6 development workers are working in the office and on projects. Located in Kyiv, the country office opened in 2009. The Ukrainian-German cooperation currently focuses on good governance, energy efficiency and sustainable economic development. © GIZ Ukraine 2020, outline non-metal construction materials
  • 6. 6 Economics is the principal driver for industry and, subsequently, the largest incentive for increasing energy efficiency is to lower total operating costs. Fortunately, there are numerous opportunities for increasing efficiency in small- to medium-sized companies. Studies have shown that up to 35% of energy consumption within the entire Ukrainian industry could be reduced in the near term throughcost-effectiveefficiencymeasures. The Federal Ministry for Economic Cooperation and Development of Germany (BMZ) pledged its support for the Ministry for Development of Economy, Trade and Agriculture of Ukraine (MDETA) and has since imple- What is the Advisory Services for Energy Efficiency in Companies project? mented a range of measures to bolster means for improving energy efficiency. One of them is the project Advisory Services for Energy Efficiency in Companies that GIZ has been implementing since 2017, on behalf of the German Government. The project provides direct technical support to Ukrainian industries, which includes conducting energy audits and developing pilot projects, which are specifically tailored to the needs of local industries. The results of these energy audits enable Ukrainian industries to develop technically and economically sound energy efficiency investment measures. SinceOctober2018,ateamofnationaland international certified energy auditors has assessed the level of energy efficiency of 65 industries according to ISO standard 50002, Part 2. This audit phase was completed in July 2019, with a focus on industrial sectors such as bakeries, dairy production, and non-metallic building materials. As a result, 20 companies were selected to be audited for investment gradeaccordingtoISO50002type3,which was concluded in March 2020. were audited according to ISO standard 50002 65 industries © GIZ Ukraine 2020, outline non-metal construction materials
  • 7. 7 The current outline is a by-product of these activities, taking advantage of assessing 7 non-metal construction material-manufacturing plants, iden- tifying their patterns in the energy use to determine promising energy-saving measures. The outline reveals typical consumption profiles as a first approx- imation, which contributes to a better understanding of energy efficiency in the Ukrainian industrial sectors. In turn, this provides greater comparabil- ity amongst sectors. Subsequently, this document has the potential to stimulate and encourage deci- sion-makers to put energy efficiency in practice. © GIZ Ukraine 2020, outline non-metal construction materials
  • 8. 8 What is an energy audit according ISO 50002? What is an investment-grade audit? Owners or managers of industrial parks and factories are not always aware of the possibilities for energy efficiency improvements. Conducting an energy audit is the first step to investigate the opportunities for energy savings, priori- tizing projects, tracking progress, and making system adjustments after investments. ISO 50002 specifies the process require- ments for carrying out a comprehen- sive energy audit. It is applicable to all types of establishments and organiza- tions, and all forms of energy and energy use. This standard also specifies the principles of carrying out energy audits, requirements for the common processes during energy audits. An investment-grade audit is the most detailed energy audit. It analyzes the financial aspects of energy savings and the return on investment from potential changes or upgrades. A building opera- tor typically uses the investment-grade audit as a budgeting tool when planning facility upgrades. © GIZ Ukraine 2020, outline non-metal construction materials
  • 9. 9 Production and distribution volumes in the industry are substantially linked to new development and modernisation of existing housing. Given the building sector stagna- tion in 2018 and 2019, the data from the All-UkrainianAssociationofBuildingMaterial Manufacturers shows a certain decline in production of building material vs 2017. E. g., ceramic brick production dropped by 11% and of concrete, cement and related products,by7%in2018;however,drymortar production grew by 13% in 2018 and has continued with the trend ever since. Green construction and national programmes promoting energy efficiency measures in public and residential buildings remain important drivers of industry development andrequireproductionofenergyefficient Challenging economic environment and its impact on energy efficiency buildingmaterials. According to the State Statistics Service of Ukraine, there are around 9,000 companies in the sector. Physically depreciated and out-of-dateplantandequipmentatmostof themleadstohighlevelsofenergy-intensity of production. Big manufacturers have troubles with maintaining their production capacitiesatproperlevelsandcompensate fixedcostsofelectricityandheatconsump- tionattheirofficeandstoragepremises,still more with absent demand for their products. Innovativetechnologiesandenergyefficien- cy measures are necessary to make enter- prises more competitive. The brochure presents some specific measures aimed at reducingenergyintensityofproduction. © GIZ Ukraine 2020, outline non-metal construction materials
  • 10. 10 Carbon dioxide (CO2 ) is a colorless gas formed during the combustion of any material containing carbon and important greenhouse gas. Carbon dioxide equivalent CO2 eq is a measure used to compare the emis- sions from various greenhouse gases based upon their global warming potential. For example, the global warming potential for methane over 100 years is 21. This means that emissions of one metric ton of methane equivalent to emis- sions of 21 metric tons of carbon dioxide. What sources of energy are used and in which quantity? The 7 assessed industries consumed between 2 and 65.1 GWh of energy in 2018. The inclusion of both large indus- tries and smaller non-metal construc- tion material manufacturers in the auditing process accounts for the strik- ing difference between the smallest and largest value. The majority of analysed enterprises consume from 50.1 to 65.1 GWh/year. There is a separate group of small consumers, the two enterprises taking 2 and 10 GWh/year respectively. The annual average has been calculated without taking into account the two latter enterprises and found to stand at 56.5 GWh/year (please refer to Fig. 1). © GIZ Ukraine 2020, outline non-metal construction materials
  • 11. 11 Figure 1, Electricity, natural gas, and coal consumption by each production facility in GWh and emissions in thou- sands of tCO2 eq in 2018 Gigawatt hours, abbreviated as GWh, is a unit of energy repre- senting one billion (1 000 000 000) watt-hours and is equivalent to one million kilowatt-hours. Electricity GWh/year Coal GWh/year Natural gas GWh/year Emissions in thousands tCO2 eq/year Total consumption GWh/year As seen in figure one, each bar stands for an individual production site, revealing its specific annual consumption of electricity (blue), natural gas (red), and coal (yellow) in GWh in 2018. The total energy consumption (black) and carbon dioxide emission in thousands of tons of carbon dioxide is highlighted in green. 1 10.3 0.5 10.8 4.0 2 4.4 45.7 50.1 42.6 3 48.7 5.4 54.1 14.8 4 50.0 8.9 59.0 18.3 5 47.0 7.5 54.5 16.4 6 1.9 0.1 2.0 0.5 7 9.4 55.7 65.1 52.7 Average 31.9 24.6 56.5 21.3 What sources of energy are used and in which quantity? © GIZ Ukraine 2020, outline non-metal construction materials
  • 12. 12 The next pie chart reveals the share of the main energy sources represented by electricity and natural gas. The chart does not include coal as this carrier was only used by one enterprise as a natural gas alternative in 2018. As Figure 2 shows, the non-metal construction materials industry is highly dependent on natural gas as the prima- ry energy carrier (56.7%) with electricity trailing well behind (43.3%). This is due to the considerable use of natural gas in production processes, e. g., for lining, Figure 2. Shares of electricity and natural gas in 2018 Energy use in the non-metal construction materials plants coking, or drying. Other natural gas consuming processes are steam gener- ation, heating, hot water supply for business needs, etc. Coal is used as a natural gas alternative and therefore has not been included in Fig. 2. Electricity consumption Natural gas consumption 43,3% 56,7% © GIZ Ukraine 2020, outline non-metal construction materials
  • 13. 13 Energy use in the non-metal construction materials plants Figure 3. Energy consumption in 2018 shares among production processes, infrastructure, and losses Energy losses occur throughout the energy supply and distribution system. Energy is lost in power generation and steam systems, both off-site at the utility and on-site within the plant boundary, due to equipment inefficiency and mechanical and thermal limita- tions. Energy is lost in distribution and transmission systems carry- ing energy to the plant and within the plant boundaries. Losses also occur in energy conversion sys- tems (e.g. heat exchangers, pro- cess heaters, pumps, motors) where efficiencies are thermally or mechanically limited by materi- als of construction and equipment design. Chart three indicates how much energy is consumed by a typical non-metal construction materials producing plant for production, heat- ing, and hot water supply purposes. As it is seen, 84.1% of the energy is consumed by the production process- es with the heating and hot water supply systems using about 3.5% and the remaining 12.4% lost. Energy consumption for heating and hot water supply (HWS) Energy consumption in production processes Energy losses 3,5% 84,1% 12,4% © GIZ Ukraine 2020, outline non-metal construction materials
  • 14. 38.1% 13.9% 14 Whatsubsectionsoftheproductionconsumethemostenergy? 0 On average, the process of mixing consumes 43.6% of electricity, cranes - 15.4%, furnaces and drying kilns - 13.9%, other consumers - 27.1%, as indicated in figure 4. Maximal and minimal values of electricity consump- tion are found as numeric values. It should be noted that some production equipment had to be included into the "other consumers" category as it was not possible to separate it due to the lack of technical metering systems. Electricity losses have been included here, too. Figure 5 shows the main consumer groups of natural gas used mostly for production purposes (furnaces, drying kilns, etc.), heating, and hot water supply. The group Other сonsumers Figure 4. What are the relevant users of electricity? Figure 5. What are the relevant users of natural gas (coal)? Total consumption of electricity/ natural gas and/or coal (average). Minimum values Maximum values 25% 50% 75% 100% 90% 66% 78% 34% 7% 3% 18% 15% 12% Furnaces and dryers Heating Others 0 20% 40% 60% 20,2% 10.6% 45.8% 20.9% 15.4% 11.5% 32.2% 27.1% 22.2% Furnaces and dryers Mixing Cranes Others mostly includes those that could not be specified, plus losses. The average consumption for furnaces and drying kilns accounts for 78%; heating and hot water supply take 7%; other consumers (losses included) consume 15%. Furnaces and drying kilns have been included in both charts because of some of them using electricity and others, natural gas. 43.6% © GIZ Ukraine 2020, outline non-metal construction materials
  • 15. 15 Howmuchmoney isspent onenergyinnon-metalconstructionmaterialsplants? Energy costs depend upon the amount of energy consumed, whilst the prevailing energy price scale and fixed costs for the supply installation are subject to fluctuations over time. Typical purchasing prices on electricity and natural gas per consumed MWh for the years 2016 to 2019 are highlighted in table one. While for electricity the average price per MWh had increased from 2100 UAH Figure 6. Purchase costs for electricity and natural gas in 2018 in non-metal construction materials plants in 2016 steadily to 2460 UAH in 2019, the price for natural gas dropped in 2018 from 1220 UAH to 690 UAH in 2019. Figure 6. shows the total and the share between costs spent on electricity and natural gas by a typical plant in 2018. That year 28.5 million UAH (60,2% energy costs) were spent on electricity and 18.9 million UAH (39,8%) were used to pay for natural gas. Purchase price of electricity Purchase price of natural gas 60,2% (28.5 million UAH) 39,8% (8.9 million UAH) Table 1, Costs of energy from 2016 to 2019 in UAH/MWh * The price of natural gas has been reduced due to amendments by the Cabinet of Ministers of Ukraine # 2931 1.https://zakon.rada.gov.ua/law s/show/485-2019-%D0%BF. Electricity Year Natural gas 2100 2016 690 2180 2017 1030 2460 2018 1220 2460 2019 690* Coal 750 800 896 893 © GIZ Ukraine 2020, outline non-metal construction materials
  • 16. 16 What are energy-efficiency measures and where is the largest savings potential? Energy Efficiency Measures (EEMs) are energy-using appliance, equip- ment, control system, or practice whose implementation results in reduced energy use while main- taining a comparable or higher level of service. EEMs decrease the amount of energy needed to pro- vide the same level of comfort or utility (e.g. a heating or cooling system that provides the same comfort with less fuel or electricity; a boiler of comparable size and features that uses less gas). To manage the diversity of potential EEMs, we classified them into the following subgroups of consumers: 2 Heat generation and distribution 3 Compressed air 4 Electrical devices 5 Ventilation and air-conditioning 6 Lighting 7 Production processes 1 Electricity generation and supply © GIZ Ukraine 2020, outline non-metal construction materials
  • 17. 17 What are the potential annual energy savings? Figure 7. Respective energy saving areas in the sector The following figure shows potential annual energy savings in MWh arranged in different groups of consumers as an average of the 7 assessed industry plants. The most relevant consumer groups in regard to potential savingsareledbyalargemarginwith(663 MWH/year) of heat generation and distribu- tion, followed by electricity generation and supply(452),compressedair(315),production processes(312),ventilationandair-condition- ing (294), and electric devices (207). Lighting takesthelastplace(11). 663 315 207 294 11 Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes 312 Electricity generation and supply 452 © GIZ Ukraine 2020, outline non-metal construction materials
  • 18. 18 Whataretherelevantareasofcostsavingsthe non-metalconstructionmaterialsindustry? The next chart indicates potential yearly cost savings, achieved when implementing EEMs. Due to energy costs being directly related to energy consumption and places in which the most energy losses are sustained, the ranking is led by heat generation and Figure 8. What are the relevant areas of energy cost savings in the non-metal construction materials industry? 1002 256 308 466 54 382 581 distribution (1,002 thousand UAH/year) followed by electricity generation and supply (581), ventilation and air condi- tioning (466). Next are the production processes (382), electric devices (308), compressed air (256) and again lighting takes the last place (54). Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes Electricity generation and supply © GIZ Ukraine 2020, outline non-metal construction materials
  • 19. 19 What are the investment opportunities for implementing proposed energy saving measures? Figure 9. presents the potential investment opportunities for EEMs within the energy audit for each consumer subgroup. The consumer group comprising heat generation and distribution (1,195 UAH) leads by the figure of total required investments; it is followed by ventilation and air conditioning (420), electricity generation and supply (375), electric devices (364), production processes (316), compressed air (103) and lighting (24). Figure 9. What are the investment opportunities for implementing proposed energy saving measures? 1195 103 364 420 24 316 375 Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes Electricity generation and supply © GIZ Ukraine 2020, outline non-metal construction materials
  • 20. Human-induced warming reached approximately 1°C (likely between 0.8°C and 1.2°C) above pre-indus- trial levels in 2017, increasing at 0.2°C (likely between 0.1°C and 0.3°C) per decade (high confi- dence).1 Global warming has brought about possibly irreversible alterations to Earth's geologi- cal, biological and ecological systems. These changes have led to the emergence of large- scale environmental hazards to human health, such as extreme weather, ozone deple- tion, increased danger of wild- land fires, loss of biodiversity, stresses to food-producing systems, and the global spread of infectious diseases. In addi- tion, climate changes are estimated to cause over 150,000 deaths annually.2 20 How can your industry contribute to mitigating climate change? The implementation of energy efficiency measures will strengthen your competitiveness as it reduces your operational costs. In the same breath, it addresses another, all over- laying and pressing challenge: Climate change. The rise in global average tem- perature is attributed to an increase in greenhouse gas emissions. There is a link between global temperatures, greenhouse gas concentrations – especially CO2 – and its emission due to the use of fossil energy sources in industries. 1. Global Warming of 1.5 ºC, IPCC, March 2020, https://www.ipcc.ch/sr15/ 2. Effects of global warming on humans, Wikipedia, March 2020, https://en.wikipedia.org/wiki/Effects_of_global_w arming_on_humans © GIZ Ukraine 2020, outline non-metal construction materials
  • 21. 21 How can your industry contribute to mitigating climate change? Figure 10. Emission reductions of tCO2 eq/year, implementing energy saving-measures recommended in the energy audit report Figure 10 shows the potential tCO2 eq reduction if the proposed energy-saving measures were implemented in a typical non-metal construction material produc- ing plant. The most significant potentials 165 206 189 96 10 102 83 to reduce CO2 eq emission are realized through the implementation of EEMs in compressed air systems (206 tCO2 eq/- year), electric motors (189), boiler house and heat distribution (165), and produc- tion processes (102) followed by heating, ventilation and air conditioning (96), electricity generation and distribution (83), and lighting (10). Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes Electricity generation and supply © GIZ Ukraine 2020, outline non-metal construction materials
  • 22. Relevant energy efficiency measures Every industrial non-metal construc- tion materials manufactory is unique and requires tailored approaches to improve its energy efficiency. Never- theless, the assessment of the 7 non-metal construction materials producing plants revealed clear patterns regarding promising improvements. The most relevant energy-saving measures in terms of investment opportunities, energy savings, costs savings, payback period, and savings of tCO2 eq are presented in Table 2. 22 © GIZ Ukraine 2020, outline non-metal construction materials
  • 23. 23 Table 2 Сapital expenditures thousand UAH Savings thousand UAH Energy savings MWh average Simple payback period years Savings tCO2 eq* Thermal insulation of pipelines at boiler house 1.6 1.9 5.5 0.9 1.1 Decentralization of compressed air system 89 38 66 1.0 60 Heat recovery from compressors 143 46 443 2.7 120 Thermal insulation of buildings 277 107 69 3.6 14 Modernization of the lighting system 24 27 11 1.3 10 Thermal insulation of production equipment 265 306 333 1.3 75 Optimization of air recirculation in tunnel drying furnaces 1550 1387 477 1.0 126 Typical EEMs in in the non-metal construction materials industry * Emission factor per 1 MWh of electricity - 0.912 tCO2 eq; per 1 MWh of natural gas - 0.202 tCO2 eq; per 1 MWh of coal- 0.354 tCO2 eq. https://publications.jrc.ec.europa.eu/repository/bitstream/JRC90405/part%20ii%20ru%20new%20pubsy%20.pdf © GIZ Ukraine 2020, outline non-metal construction materials
  • 24. Table 3. Energy efficiency measures developed in the framework of energy audits, stratified by cost payback period 24 As it is seen from Table 3, a considerable proportion of suggested EEMs has a repayment period of up to two years. of the energy savings can be reached by implementing energy-saving measures with a simple cost recovery period below 2 years 82.6% < 2 years 2 to 5 years > 5 years Number of EEMs Simple Payback period Energy Savings MWh/year Share of Energy savings Emission reduction tCO2 eq 4-5 1,705 82.6% 623 1 143 6.9% 30 0-1 217 10.5% 46 © GIZ Ukraine 2020, outline non-metal construction materials
  • 25. In a typical non-metal building materi- als production, the implementation of three to four energy saving measures with investment costs of below 60,000 UAH each would contribute to 17.8% total potential energy savings identi- fied during the energy audit. One to three measures with investment cost from 60,000 UAH to 300,000 UAH each would bring a potential saving of 7.3% while two to three measures with investment cost in excess of 300,000 UAH each could save 74.9% ener- gy-saving potential. Table 4. Energy-saving measures developed in the context of cost-based energy audits 25 EEM with investment cost < 60,000 UAH EEM with investment cost from 60,000 – 300,000 UAH EEM with investment cost > 300,000 UAH Number of EEMs Energy Savings MWh/year Share Energy savings Emission reduction tCO2 eq EEM 3-4 367.3 17.8% 240.2 Electricity 0-1 69.4 3.4% 77.7 Natural Gas (Coal) 2-3 298.0 14.4% 162.5 1-2 151.8 7.3% 135.4 0-1 102.9 5.0% 93.8 0-1 48.9 2.4% 41.5 2-3 1546.4 74.9% 324.1 0-1 3.0 0.2% 2.7 1-2 1543.4 74.7% 321.4 © GIZ Ukraine 2020, outline non-metal construction materials EEM Electricity Natural Gas (Coal) EEM Electricity Natural Gas (Coal)
  • 26. Or, in other words, what measures have the greatest impact and lead to the highest reduction of greenhouse gas emissions in relation to specific investment? Recovery of heat from compressors (840g CO2 eq/year per 1 UAH invested) is the most promising emission-reduc- ing measure; among other potential measures are: insulation of pipes at boiler plants (677), compressor equip- ment decentralization and lighting modernisation (439 each), thermal insulation of production equipment (282), optimisation of air recirculation in tunnel drying ovens (81) and thermal modernisation of premises (51). What is the CO2 eq reduction/investment ratio through the implementation of EEMs? 26 Figure 11. Reduction emission grams of CO2 eq/year and invested UAH Insulation of pipes at boiler house 677 Decentralization compressed air system 439 Heat recovery from compressors 840 Thermal modernization of building 51 Optimization of air recircula- tion in tunnel drying tunnel drying furnaces 81 Lighting modernization 439 Thermal insulation of produc- tion equipment 282 © GIZ Ukraine 2020, outline non-metal construction materials
  • 27. Energy consumption, potential savings The figure above shows the proportions among energy consumption and the potential savings if the proposed ener- gy-saving measures were implemented. Theenterprisesofthenon-metalbuilding material industry consume from 2 to 65.1 27 Typical consumption, GWh/year Saving through implementation of suggested measures, GWh/year Potential savings, GWh/year Figure 12. What are typical consumptions, potential savings, and savings through the implementation of suggested measures? 1 2 3 4 5 6 7 Average GWh/year. The average consumption stands at 56.5 GWh/year. The average consumption rate has been calculated without regard to enterprises consuming less than 50.1 GWh/year. The total energy saving potential averaging to 13.5 GWh/- 10.8 3.2 3.8 50.1 1.3 12.5 54.1 3.1 13.5 59.0 3.1 14.7 54.5 1.7 13.6 2.0 0.44 0.5 65.1 0.1 13.0 56.5 1.82 13.5 © GIZ Ukraine 2020, outline non-metal construction materials year has been marked in yellow, while energy-savings attainable with imple- mentation of the measures suggested in energy audit reports (1.82 GWh/year average) have been coded in red.
  • 28. Examples of EnPIs are energy consumption per time, energy con- sumption per unit of production, and multi-variable models. The values presented in Fig. 13 should be construed as a rough reference not directly comparable due to the different product range, product mix and production processes in the industry. Still, they can serve as stimulus for corporate managers to develop their own specific set of EnPIs. How much energy is used to produce 1 ton of building materials? 28 To answer the question, we will need a definition from DSTU ISO 50001:2018, namely, the one of energy performance. According to the ISO 50001 standard, “energy performance is the measur- able result related to energy efficien- cy, energy use, and energy consump- tion.” The energy management sys- tem performance can be measured using Key Performance Indicators (EnPIs). “Energy performance indica- tor is a quantitative value or measure of energy performance, as defined by theorganization.”Itisimportanttoset appropriate EnPIs for monitoring and measuring the energy performance because they show how well the system is functioning. © GIZ Ukraine 2020, outline non-metal construction materials
  • 29. How much energy is used to produce 1 ton of building materials? The next chart indicates the energy consumption per construction materials produced. Figure 13. Energy consumption in kWh per 1 ton of non-metal constuction materials produced (2018). 29 In 2018, the specific energy consumption of the seven assessed plants ranged from 44 to 467 kWh/ton with an average of 235 kWh/ton. 100 200 300 400 500 84 44 300 178 467 223 350 235 1 2 3 4 5 6 7 0 © GIZ Ukraine 2020, outline non-metal construction materials
  • 30. Take away messages 30 - The total annual energy consump- tion of the 7 assessed non-metal construction material producing plants in 2018 ranged from 2.0 to 65.1 GWh/year with the average value of 56.5 GWh/year. The non-metal const- ruction material industry highly depends on natural gas as energy source, with 56.7% of energy coming from gas as opposed to 43.3%comingfromelectric- ity. The main electricity consumers are: process of mixing (43.6%); furnac- es and drying kilns (13.9%); cranes (15.4%); other equipment (27.1%). The other consumers mostly include those that could not be specified, plus elec- tricity losses. - While for electricity the average price per MWh increased from 2100 UAH in 2016 steadily to 2460 UAH in 2019, the price for natural gas dropped from 1220 UAH in 2018 to 690 UAH in 2019. A typical non-metal construc- tion material producing plant spent in 2018 28.5 million UAH Potential annual cost savings with suggested EEMs based on energy auditresultsare: heatgenerationand Consumer groups promising in terms of energy saving include: heat generation and distribution (663 MWh/year) followed by elec- tricity generation and supply (452), compressed air (315), pro- duction processes (312), ventila- tion, and air conditioning (294), and electric drives (28). Lighting ranks the last (11). - 84.1% of the energy consumption can be asso- ciated with the production processes. The heating systems and hot water supply take about 3.5% and the remaining 12.4% are counted as losses. The principal consumers of natural gas and coal are: furnaces and drying kilns (78%); heating and hot water supply (7%); other consum- ers, incl. losses (15%). 43.3% 56.7% 84.1% 12.4% 3.5% 78% 7% 15% 60.2 39.8 % 29.4 20 14 13 9 14 0.5 % © GIZ Ukraine 2020, outline non-metal construction materials (60.2% of the energy costs) on electricity, and 18.9 million UAH (39.8%) on natural gas. Cost of coal has not been included as it was only used by one enterprise as a natural gas alternative.
  • 31. 31 82.6% of energy savings can be reached by implementing energy-saving measures with a payback period of less than 2 years. In 2018, the specific energy consumption of production process- es at the seven assessed plants ranged from 44 to 467 kWh/ton with an average of 235 kWh/ton. In a typical non-metal building materials production, the implemen- tation of three to four energy saving measures with investment costs of below 60,000 UAH each would contribute to 17.8% total potential energy savings identified during the energy audit. One to three measures with investment cost from 60,000 UAH to 300,000 UAH each would bring a potential saving of 7.3% while two to three measures with investment cost in excess of 300,000 UAH each could save 74.9% energy-saving potential. Energyefficiencymeasurespromis- ing as per their repayment period include:thermalinsulationofpipelinesat boiler plants (costs recovered in 0.9 years), compressor equipment decen- tralization, and optimization of air recir- culationintunneldryingfurnaces(1). 82.6% According to the total amount of investments, EEMs are distributed asfollows:heat generation and distri- bution (1,195 UAH), heating, ventilation and air conditioning (420), electricity generation and distribution (375), elec- tric motors (364), production process- es (316), compressed air systems (103) and lighting (24). 33 19 15 13 10 8 2 % 43 15 13 13 11 4 1 % 24 22 19 12 10 11 1 % 74.9 17.8 7.3 % © GIZ Ukraine 2020, outline non-metal construction materials distribution (1,002 thousand UAH/year) followed by electricity generation and supply (581), and ventilation, and ventila- tion and air-conditioning (466). Next are the production processes (382), electric motors (308), compressed air systems (256)withlightingbeingonthelastplace again(54). Significant potentials to reduce tCO2eq emissioncan beachieved through the implementation of energy efficiency measures in the compressed air systems (206 tCO2eq/year), electric motors (189), boiler houses and heat distribution (165) and production processes (102) followed by heating, ventilation and air conditioning (96), electricity generation and distribution (83) and lighting (10).
  • 32. A small selection of energy-saving actions 1 Turn-off campaigns for conveyors (optimization of conveyor operation). 2 Optimized operation procedures for main equipment (e.g., furnaces, drying kilns, mills, mixers, cranes). 3 Compressed air management practices. 4 More efficient air compressors including variable speed drive units. 5 Surveying of compressed air systems to identify and eliminate leaks. 6 Heat recovery from production equipment. 7 High-efficiency lighting applications – the installation of T5 fluorescent high-frequency (or LED) systems in production areas. 8 Occupancy control of lights in lower use areas such as offices, meeting rooms, stores, and plant rooms. 9 Energy performance monitoring and targeting programs. 10 Improved insulation of the main production equipment (like furnaces and drying kilns). 11 Reducing the amount of air entering dispatch areas – by improving seals and air curtains. 12 Space heating control improvements – office wet systems temperature compensation and boiler optimization; process area convector heater advanced controls for convection heaters in the production areas. 13 Using frequency-controlled actuators (FCAs). 14 Improved insulation of heat distribution lines. 15 Energy-saving and energy efficiency awareness-raising campaigns for the staff and other stakeholders.