Improving SME Profitability

and Environmental

Performance Through Cleaner

Production

Prof. Nonita T Yap SEDRD,

University of Guelph Canada

Modules 5&6

June 3, 2013

Malolos City

How to do a

Cleaner Production

Audit

CP

Key requirement for

initiating a program for

Commitment from

Management

Reducing production cost and

therefore reduction of waste.

Providing incentives to workers

who reduce waste – rewards,

recognition.

Providing the necessary training

to workers

The owner and manager must

be serious about …

TRAINING OF

WORKERS

Training the workers in Identifying and managing wastes.

Recognising that there is a cost associated with producing wastes

Different ways of reducing wastes.

At the very least – training in good housekeeping practices

GOOD HOUSEKEEPING

PRACTICES - examples Minimise spills and leaks Improve operating practices Adequate and proper storage of materials

Keeping containers closed and

in a secure place.

Ensuring that all containers are

properly labeled (content, date,

etc.)

Having different containers for,

i.e., not mixing, different wastes

Why does the following constitute

good business practice?

1. CP Advisor signs the agreement with management

2. Form and train the CP team

3. Develop the flow diagrams for different processes

4. Determine the critical points

5. Prioritise the environmental impacts

6. Determine the real causes - using fishbone diagram

7. Develop measures /options for improvement

8. Feasibility study : prioritise, evaluate, rank

9. Review, finetune the options

10. Develop the action plan

11. Monitor and evaluate

12. Change if necessary to meet market demands

1. Planning &

organisation

2. In-plant evaluation

/ On-site audit

/CP assessment

3. Select CP

options

4. Implement

Monitor,

Evaluate & adjust

Days 1 &2

Day 3 & 4

Obtain management

commitment

Organize a CP team

Set SMART goals

• Identify the main processes and the most wasteful

process units – production, material handling &

storage, uitilies, etc

• Identify inputs and outputs – collect necessary data

• Prepare flow charts

• Establish material, water and energy balances

• Identify critical points in terms of financial

viability, environmental impacts and quality control.

• Raw materials usage and costs

• Production quantities and sales revenue

• Quantities of wastes generated in each unit

operation if possible

• Labour costs

• Utilities consumption and costs

• Environmental and labour compliance costs

This baseline is important for evaluating and.

selecting the best CP options

STANDARDS for developing flow charts

Integrity – all revelant environmmental impacts of the operations should be listed. Transparency /objectivity – All the flow of materials and energy should be registered objectively Continuity – time period should be equal for all the areas (e.g., 1 yr) Practicality/efficiency – to utilise all resources (time personnel, expenditures) register only the material and energy that are ecologically relevant Confidence – the data collected should lead to plausible results Clarity – The results are unequivocal and useful from the perspective of decision making.

Consistent units of measurement Consistent form of measurement Unit price of inputs and products – for costing purposes

Basic points to remember

1 ) u s e yo u r e y e s , e a r s , n o s e - l o o k , l i s t e n a n d s n i f f

2 ) R e v i e w w h at c o m e s i n – r aw m at e r i a l i n p u t s ,

e n e rg y, wat e r - c o m pa r e t h e m w i t h w h at l e av e s

i n t e r m s o f t h e p ro d u c t t o d e t e r m i n e t h e wa s t e

o r l o s s – e n v i ro n m e n ta l i n d i c at o r s f o r t h e

c o m pa n y.

3 ) I n f o r m at i o n o n t h e f l o w o f e n e rg y & m at e r i a l s

h e l p t o s p e c i f y t h e m e a s u r e s f o r r e d u c i n g r aw

m at e r i a l c o n s u m p t i o n , e m i s s i o n s & t h e r i s k s ,

d e t e r m i n e t h e c o n t ro l & d i r e c t i o n o f t h e

p ro c e s s e s a s w e l l a s a n a ly s e t h e c o s t o f

e n v i ro n m e n ta l p ro t e c t i o n

Other important points Chronological comparison (this

way it is possible to detect changes

and trends over time)

Evaluation in terms of regulatory

compliance

Comparison between enterprises

(with which it is possible to

establish benchmarking)

Gathering and preparing

information – complement

and triangulate 1. Interviews

2. Visual Inspection

3. Document review (e.g., notice of

permit, registers, activities for

inventory and measurements,

etc.)

• Identify sources of wastes

based on flow charts

• Identify opportunities for

reducing/ eliminating wastes

using Fishbone diagram

• Screen & rank CP option

1. Good housekeeping

2. Process optimization

3. Raw material substitution

4. On-site recovery/reuse

5. Product modification

6. Offsite recovery and reuse

7. Equipment modification/ Technology change

1) What are the main environmental and

economical benefits to be obtained by

implementing the identified CP options?

2) Can these options be done within a reasonable

timeframe without disrupting production?

3) What are the related costs to the

implementation of these CP options?

4) No and low costs options should be

implemented before medium and high cost

options

• Secure funding

• Implement feasible CP options

• Monitor and evaluate CP progress

• Compare the situation before and

after the implementation

MODULE 6

1. Case study: meat

processing plant – highlights

2. Greening the economy from CP to industrial ecology

25

1. Delivery & holding of livestock

2. Stunning & slaughter

3. Hide removal,

dehairing/ defeathering

4. Evisceration

5. Trimming & carcass washing

6. Boning 7. Chilling

8. Packaging

9. Cold Storage

28

1 - Transport

• Animals delivered in

trucks;

• Trucks are washed

2 - Holding &

Inspection

• Animals are held in pens

& inspected.

• Condemned animals are

separated and killed.

fuel

Animals

dead on

arrival

Faeces, urine,

contaminated

water

Condemned

animals

water

Live

animals

Live

animals

Faeces, urine,

contaminated

water

water

Incineration

Wastewater treatment

29

4 - Evisceration & Splitting • Abdomen cut open & viscera removed

• Breastbone split

• Heart/liver/lungs removed;

• Head removed

• Carcass cut into two along the spine

• Hide removed

Energy (to sterilize

equipment)

Wastewater

Water

Intestines,

edible organs

Hides

Inedible offal & Parts

3 - Stunning &

Bleeding

Animals are first

stunned or killed,

and then bled

Carcass

blood

Faeces, urine,

contaminated

water

Water Disinfectant

Wastewater treatment

Carcass

Disinfectant

Condemned parts

Incineration

30

5 - Chilling

Carcasses

refrigerated

overnight

water

wastewater

Energy (for

refrigeration)

6 - Cutting &

boning

Carcasses are cut

into pieces for

retail, some bones

removed

7 - Packaging

Energy (to sterilize

equipment &

refrigeration)

water

Bones

fat

Meat Carcass

Energy (to sterilize

equipment &

refrigeration) water

Leaks of refrigerant fluids (Ammonia, CFCs

Wastewater treatment

31

Incineration

Condemned animals

and parts

Rendering

Parts and scraps

are rendered for

tallow

?

Waste treatment

processes

Secondary production

processes

And what other processes?

?

? ?

? ? ?

? ?

There may be some secondary

production processes

OPTION

1

OPN 2 OPN 3 OPN 4 OPN 5 OPN 6 OPN 7

DOAs (Dead on

arrival)

Who are the suppliers?

Water consumption

BOD level in

Wastewater

Fat and grease

Energy (steam)

consumption

Waste (DOAs) disposal

Meat losses in packing

Opportunities through Cleaner

Production and Ecology

1. Green Economy

2. Intl Environmental

Governance

3. Sustainable Consumption

and Production

35

36

• A low-carbon economy

• Green growth

• An economic system that is compatible

with the natural environment.

• Investing in sectors producing

environmentally friendly or enhancing

products, contributing to economic

growth and jobs.

• “A green economy is... • an economic system that ensures social equity,

protects the ecological balance and creates economic sufficiency.”

• the replacement of the current economic order of inequity, destruction and greed that has kept half of the global people in poverty and created a potential climate catastrophe.”

• The core idea of a GE should be to enforce Sustainability as in wellbeing of all people and biodiversity.

• only be about the market opportunities for green technology

• make the mistake of a Green Revolution that promoted mass-scale industrialized food production

• evolve around just a smart grid business platform based on public-private partnerships.

• be a Green Washing of the consumerist society seeking increased consumption of quality products. “

“A Green Economy can be defined as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.”

Green Economy : civil society groups

UNEP – GREEN ECONOMY INITIATIVE

• Agriculture,

•Fisheries,

•Manufacturing,

•Tourism,

•Energy

•Transport,

•Buildings,

• Cities,

•Forests,

•Water and

•Waste

• decoupling of production and environmental degradation

• Environmental degradation = fcn (Pollution or waste per GDP x GDP/capita x Population)

This decoupling is possible ONLY through industrial ecology and cleaner production

Prof. Nonita T. Yap, DOST Balik Scientist

DENR presentation – May 20 2011

42

• The percentage of goods going directly from

production to disposal (i.e., single-use products)

is reaching 30% in some sectors

• For many products, the number of goods thrown

away is comparable to the number of goods

sold, indicating a substitution, rather than an

increase in wealth

• Technological progress is still focused on

production not on utilisation 43

44

“Doing Nothing” (Dilute & Disperse)

End-of-Pipe Technology

Pollution Prevention/

Cleaner Production

(21st century?)

Industrial Ecology/

circular economy

45

1. It is a systematic, comprehensive, integrated view of all the components of the industrial economy and their relationship with the biosphere

2. Emphasizes the complex patterns of material flows both within and outside of the industrial system RATHER than in terms of abstract monetary units or energy flows

3. Technological dynamics and development is a crucial, but not exclusive, element to achieve viable and sustainable industrial economic systems

IT IS BASED WITH CLOSING THE LOOPS

AMONG FIRMS

CLEANER PRODUCTION CLOSES THE LOOPS WITHIN.

Prof. Nonita T. Yap, DOST Balik Scientist

DENR presentation – May 20 2011

46

The Natural Ecosystem

Abiotic

Substances

Producers (e.g. plants)

Consumers (e.g. animals)

Decomposers (e.g. bacteria)

Ind

ustr

ial E

co

log

y . M

imic

bio

log

ical

syste

ms (

UN

EP

n.d

.)

47

The Natural Ecosystem

The Industrial Ecosystem

Raw Materials

Supplier Manufacturer Consumer

Waste

Processor

Abiotic

Substances

Producers (e.g. plants)

Consumers (e.g. animals)

Decomposers (e.g. bacteria)

WASTE RESOURCES

RESOURCES

from the

Lithosphere

Ind

us

tria

l E

co

log

y.

Ide

nti

fy p

ote

nti

al i

nd

us

tria

l

‘me

tab

oli

c’ p

ath

ways

(U

NE

P n

.d.)

48

The Natural Ecosystem

The Industrial Ecosystem

Resources

Raw Materials

Supplier Manufacturer Consumer

Waste

Processor

Secondary

RESOURCES

‘Producers’ (manufacturers)

‘Consumers’

‘Decomposers’

WASTE

RESOURCES

from the

Lithosphere

Ind

us

tria

l E

co

log

y –

es

tab

lis

h in

du

str

ial

me

tab

olic

p

ath

wa

ys

.

•

•

49

“... involves designing industrial infrastructures as

if they were a series of interlocking man-made

ecosystems interfacing with the natural global

ecosystem.” (H. Tibbs, Industrial Ecology - An Environmental

Agenda for Industry, 1993)

These interlocking ecosystems can be

defined/bounded at three levels – material, sector,

spatial (region/estate)

50

The Industrial Symbiosis

in Kalundborg, Denmark

Asnæs Power Station [photo: Indigo Development]

51

Th

e L

oc

ati

on

of

Ka

lun

db

org

…

ASNÆS - the largest coal-fired power station producing electricity in Denmark.

STATOIL - an oil refinery belonging to the Norwegian State Oil company

NOVO NORDISK - a multi-national biotechnology company producing insulin and industrial enzymes.

GYPROC - a Swedish company producing plasterboard for the building industry.

City of KALUNDBORG - receives excess heat from Asnaes for its residential district heating system.

BIOTEKNISK JORDRENS - a soil remediation company.

52

53

Statoil

Novo

Nordisk

Gyproc

Asnæs

Municipality

Photos: Symbiosis Institute, Novo Nordisk, Statoil

54

55

Asnæs

Power

Station

Statoil

Refinery

Gyproc

Municipality

of

Kalundborg

Novo

Nordisk

Bioteknis

k

Jordrens

Fertiliser

Industry (NH4)2S2O3

Cement

Industry

Farms

Sulphur- and

Ammonia-rich

Effluents Gas

Fly Ash Gypsum Waste

Water

Biomass

& Yeast

Slurry

Sludge

Used Water

Nickel &

Vanadiu

m

56

Asnæs

Power Station

Statoil

Refinery

Municipality

of Kalundborg

Novo

Nordisk

Lake

Tissø

Waste

Water

Steam

Steam

Water Water

Water

Used Water

Water

Artificial

Lake

57

Asnæs

Power Station

Statoil

Refinery

Gyproc

Municipality

of Kalundborg

Novo

Nordisk

Fish

Farms

Gas

Residual

Heat

Residual

Heat

Steam

Steam

58

Asnæs

Power

Station

Statoil

Refinery

Gyproc

Municipality

of

Kalundborg

Novo

Nordisk

Bioteknis

Jordrens

Lake

Tissø

Fertiliser

Industry (NH4)2S2O3

Cement

Industry

Farms

Fish

Farms

Sulphur- and

Ammonia-rich

Effluents Gas

Fly Ash Gypsum

Residual

Heat

Residual

Heat

Waste

Water

Steam

Steam

Water Water

Water Biomass

& Yeast

Slurry

Sludge

Used Water

Water

Artificial

Lake

Nickel &

Vanadium

• Reduction in consumption of resources:

• oil - 45,000 tons/year

• coal - 15,000 tons/year

• water - 600,000 m3/year

• Reduction in emissions:

• carbon dioxide - 175,000 tons/year

• sulfur dioxide - 10,200 tons/year

• Valorisation of “wastes”:

• fly ash (for cement etc.) - 130,000 tons/year

• sulfur - 4,500 tons/year

• calcium sulfate (gypsum) - 90,000 tons/year

59

With 18 projects -

Investments: $ 75 million

Total Revenues: $ 160 million

60

A co-operative approach can result in significant reductions in

environmental impacts … and save money.

The Symbiosis essentially « organised itself » over a long period of

time using sound financial criteria to decide on projects BUT

INITIALLY TRIGGERED (and sustained) BY POLICY.

Confidence was built between partners, resulting in long-term

contracts to supply « wastes » to each other.

The close proximity of partners has helped to reduce investment

costs for infrastructure (e.g. pipelines etc.)

The proximity and the social relations among the human partners -

crucial in developing co-operation (socio-cultural factors) and reducing

transaction costs.

Creation of a working group to follow the development of projects is

very important (e.g. Symbiosis Institute, 1996)

OTHERS HAVE FOLLOWED - AUSTRALIA, CHINA, FINLAND, SWEDEN