Urban sustainability and energy efficiency in industry

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Regional Environmental Center Regional Environmental Center for Central and Eastern Europe for Central and Eastern Europe

Đorđićeva 8a, 10000 Zagreb, CroatiaĐorđićeva 8a, 10000 Zagreb, CroatiaŽeljka MedvenŽeljka Medven, , Project ManagerProject Manager

E-mail: E-mail: [email protected]@rec-croatia.hrTel: +385-1-4873-622Tel: +385-1-4873-622Fax: +385-1-4810-844Fax: +385-1-4810-844

Urban sustainability and energy efficiency in industry

mailto:[email protected]

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From global to local levelFrom global to local level

Urban sustainability and industryIndustry in CroatiaEnergy efficiency in small and medium

size enterprizes (SMEs) – Croatian case study

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Urban developmentUrban development

A path to a sustainable world?Environmental threats, social and economic distress

- agglomerations- wealth and income inequality

- consumption of natural resources and production of waste

- urban transportation system- industrial development and its pollution- inefficient energy consumption

Economic globalization lacks an effective model for sustainable local development.

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Key Factors in Urban Key Factors in Urban SustainabilitySustainability

ENERGY USE AND CONSERVATION:Oil problemPatterns of transport energy use

between cities and within citiesEnergy conservation and efficiency

in the built environment

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Where next?Where next?Situation

•Over 50% of the world's population, i.e. 3 billion people, lives in urban centres (cities and megacities)

•Around 80% of the European Union’s population lives in cities and towns

Solutions to-date

•Sustainable community initiatives - promote waste reduction, pollution prevention, forming of environmental industry economic development strategies

Drawbacks

•Incremental improvements

•Separate interests of stakeholders

Solution•communities as living systems (industrial metabolism)•industrial ecology as the new approach

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Industrial MetabolismIndustrial Metabolism

"metabolism" of industry, commerce, municipal operations, and households

community consumes material and energy inputs, processes them into usable forms, and eliminates the wastes from the process

possible public and private cost-savings and opportunities for new business development

Measures of sustainability:

The ratio of virgin to recycled materials Ratio of actual/potential recycled materials Ratio of renewable/fossil fuel sources Materials productivity: Energy productivity Resource input per unit of end-user service

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Industrial ecologyIndustrial ecology An industrial ecology (IE) perspective provides tools for understanding the

environmental impacts of a community's industry, commerce, infrastructure, and household behavior as a whole system.

addressing industry's needs in the transition to sustainable communities. The goal is to support business competitiveness and job creation through

strategies that also improve environmental protection and quality of life in all dimensions.

The benefits to communities of this holistic foundation for change include: Creation of common ground for all community stakeholders to plan

effective change; Increased efficiency of energy and material resource use; Increased competitiveness for businesses; Ability to target highest risks and opportunities for greatest improvement; Decreased pollution and damage to the health of citizens and the

environment; Opening of new local business and job development opportunities; Revitalization of existing industries; Improvements in the efficiency and extension of the life of municipal

infrastructure systems; and Restoration of the viability of local ecosystems.

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Industrial ecosystemIndustrial ecosystemAn industrial ecosystem is a community or network of companies and other organizations in a region who chose to interact by exchanging and making use of byproducts and/or energy in a way that provides one or more of the following benefits over traditional, non-linked operations:

Reduction in the use of virgin materials as resource inputs;

Reduction in pollution; Increased energy efficiency leading to reduced

energy use in the system as a whole; Reduction in the volume of waste products

requiring disposal (with the added benefit of preventing disposal-related pollution); and

Increase in the amount and types of process outputs that have market value.

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Industrial ecosystemIndustrial ecosystem– Kalundborg case study– Kalundborg case study

Kalundborg is a Denmark harbor town with buildings dating back to the 12th Century.

What happened over last 20 years? spontaneous but slow evolution of the "industrial symbiosis" development of network of materials and energy exchanges among

companies (and with the community)

Why it happened?to reduce costs by seeking income-producing uses for "waste" products

Five core partners: Asnaes Power Station Statoil Refinery Gyproc, a plasterboard factory Novo Nordisk, an international biotechnological company The City of Kalundborg, supplies district heating to the 20,000 residents, as

well as water to the homes and industries

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Industrial ecosystem – case Industrial ecosystem – case study...study...

Energy Flows

The power station - coal-fired, 40 percent thermal efficiency. Refinery flared off most of its gas by-product.

Then, starting in the early '70s, a series of deals were struck:

The refinery agreed to provide excess gas to a plasteboard factory Power station began to supply 3 new customers with stem

the city with its new district heating system (3,500 oil furnaces replaced) biotechnology company refinery

The power plant uses salt water, from the fjord (instead fresh lake water), for some of its cooling needs. The resulting by-product is hot salt water, a small portion of which is supplied to the fish farm's 57 ponds.

In 1992, the power plant began substituting fuels, using surplus refinery gas in place of some coal. This only became possible after refinery built a sulfur recovery unit to comply with regulations on sulfur emission; the gas was then clean enough to permit use at the power plant.

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Materials Flows

In 1976 the biotechnology company started the pattern of materials flows, matching the evolving energy flows at Kalundborg.

Sludge from biotechnology processes and from the fish farm's

water treatment plant is used as fertilizer on nearby farm.

A cement company uses the power plant's desulfurized fly ash. Power plant reacts the SO2 in its stack gas with calcium carbonate, thereby making calcium sulfate (gypsum), which it sells to plasterboard company, supplying 2/3 of the latter's needs.

The refinery's desulfurization operation produces pure liquid

sulfur, which is trucked to sulfuric acid producer.

Surplus yeast from insulin production at biotechnology company goes to farmers as pig food.

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Lessons from Kalundborg contracts negotiated bilateraly economically attractive for both

companies opportunities only within a company's

core businessminimizing risks independent evaluation of deals

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Pre-conditions for development of a similar network of exchanges:

Industries different and yet fit each other. Arrangements commercially sound and profitable. Development voluntary, in close collaboration with

regulatory agencies. A short physical distance between the partners

necessary for economy of transportation (with heat and some materials).

At Kalundborg, the managers at different plants all know each other.

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Industrial ecology Industrial ecology - Municipal - Municipal infrastructureinfrastructure

community's energy and materials flows – mostly local energy, water, solid and liquid waste, and transportation systems

industrial ecology approach - "soft infrastructure" (finance, education, training, tax incentives, and other public programs) to achieve much higher efficiencies

An integrated strategy for extending the life of landfills would include: Analysis of the major elements in the waste stream Education and training in waste reduction A business development strategy targeting companies recycling and

reusing waste Selection among options to get highest value out of reused materials and

products; Development of information systems and businesses supporting the

exchange of waste materials and energy

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Industrial Ecology - Business Industrial Ecology - Business Development OpportunitiesDevelopment Opportunities

Entering new markets for existing goods and services By-product trading – opportunities for reprocessing and information

technologies and for service providers

Marketing emerging technologies, materials, and processes Consulting and information system opportunities services of management and environmental consulting companies,

training firms, print and electronic publishers, information system providers, and educational institutions.

Integrating technologies and methods into innovative new systems. larger corporations, or joint ventures an integrated home appliances

Supply and distribution services to sustainable farming greater need for education, training, consulting, telecommunications, and

electronic equipment

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Energy efficiency?Energy efficiency? Energy efficiency means using less energy to perform the same function.

Energy efficiency should reduce both use of resources and damage to the environment due to energy generation and consumption.

Demand Site Management programs are aimed at reducing the energy used by specific end - use devices and systems, typically without affecting the services provided. E.g. these programs reduce overall electricity consumption by substituting technologically more advanced equipment to produce the same level of end-use services (eg, lighting, heating, motor drive) with less electricity.

Examples include energy saving appliances and lighting programs, high-efficiency heating, ventilating and air conditioning (HVAC) systems or control modifications, efficient building design, advanced electric motor drives.

Energy audit is a systemized approach to measuring, recording, and evaluating the operating performance of a building or building system with the intention of improving the performance

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Energy efficiencyEnergy efficiencyin Croatiain Croatia

Socialist market - low level of the efficient use of energy old technologies lack of energy management inadequate energy policy

Transitional approach unorganised approach the lack of up-to-date knowledge missing information interchange

Emerging trends energy laws capacity building programs new financing possibilities - Fund for environmental protection and

energy efficieny

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Target groups Tipical activities

Industry

Key projects in sectors: wood and food processing Analysis of EE potential

Potentials for fuel replacement, use of wood waste, etc.

Benchmarking

Construction materials

Others

Hotels and other

Hotels and other tourist facilities Potentials for increasing EEDevelopment of financing modelsOthers

Public sector

Hospitals Development of energy auditsDevelopment of ESCO and similar

modelsSchools and kindergardens

Other (shops, admin.buildings,etc.)

Energy consumersEnergy consumersby sectorsby sectors

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Industry sector -networking

Industry sector missing:

Scientific approach to energy efficiency Global insight into economic and environmental aspects of the non-

rational energy consumption Relevant information on applicable savings Knowledge on general and technological development

Tipically:• Large enterprises have adequate knowledge• Smaller enterprises due to their size do not pay adequate

attention to energy efficiency

Networking:Network of industrial energy efficiency (MIEE)

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Sectors and processesSectors and processes Electricity consumption Heat consumption Water consumption etc.

Industry:

construction materials

food processing

chemical industry

glass and non-metals

paper

iron and steal

non-ferrous metals

other

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Energy consumption

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Ele

ctri

city

, GW

h

Croatia totalIndustry

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

Hea

t T

J

Croatia total

Industry

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Energy consumption - Energy consumption - industryindustry

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

TJ

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Industry - consumptionNatural gas

Coal and coke

Fuel oil

Steam and hot water

Electricity

In 2002:electricity: 2890 GWh (~23%)

heat: 41000 TJ (~38%)

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0

100

200

300

400

500

600

700

800

GW

h

Construction m

aterials

Chemical

Food processingPaper

Iron & steel

Glass & non-metallic

minerals

Nonferrous m

etalsOther

Industry - electricity consumption in 2002.

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0

2000

4000

6000

8000

10000

12000

14000

16000

18000

TJ

Construction m

aterials

Food processing

Chemical

Glass & non-meetallic

mibneralsPaper

Iron & steel

Nonferrous m

etalsOther

Industry - heat consumption in 2002.

Steam & hot water

Coal & coke

Natural gas

Liquid fuel

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Chemical industryChemical industry

0,0

2000,0

4000,0

6000,0

8000,0

10000,0

12000,0

14000,0

TJ

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Steam and hot water

Natural gas

Liquid fuel

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Chemical industryChemical industryCharacteristics:Heat consumption 4 times larger then electricityConsiderable steam and hot water consumptionNatural gas consumption increases

Applicable measures:Heat: process rationalization, waste heat recovery, boiler

improvement and other measures for heat Electricity: similar measures as in other industries, but it should

be emphasised that the broader application of efficient motors and variable speed drives, at pumps and other devices

Annual saving potentials:Annualy 200-300 TJ heat and 80-100 GWh electricity

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Construction materialsConstruction materials

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

TJ

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Steam and hotwater

Coal and coke

Natural gas

Liquid fuel

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Construction materialsConstruction materialsCharacteristics:Electricity consumption has reached its pre-war levels heat consumption has gone above 30% of that level largest part of consumption caused by the cement works

Applicable measures:waste heat utilizationfuel switchimprovement of machinery and technologyapplication of more efficient motors etc.

Annual saving potential:heat – about 800 TJ ;electricity - about 50-60 GWh

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Food processingFood processing

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

TJ

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Steam and hot water

Coal and coke

Natural gas

Liquid fuel

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Food processingFood processingCharacteristics:reached its pre-war energy consumption level relatively quick Electricity consumption – continuous increase from 1994 heat – heat and hot water up to 83%Sugar production – max heat consumerMeat industry – max electricity consumerApplicable measures:electricity: applying of efficient motors and el. consumers,

improvementof technology processes, machinery and other heat, process rationalisation, use of waste heat, condensate

and technology water re-use, and other measures Annual saving potential:700-800 TJ heat,50 GWh electricity

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MeasuresMeasuresacc. consumers groups and prioritiesacc. consumers groups and priorities

Priorities: 1 – high 2 – medium 3 -low

consu

mpti

on e

ffici

ency

ele

ktr

om

oto

r fa

cilit

ies

lighti

ng

HV

AC

syst

em

s

heati

ng

ele

ktr

oly

sis

an

d o

ther

pro

cess

es

heati

ng o

f p

rem

ises

heat

carr

iers

reuse

of

condensa

te

reuse

of

wast

e h

eat

indu

stri

al th

erm

al p

roce

sses

food p

roce

ssin

g

sanit

ary

hot

wate

r

heat

for

ab

sorp

tion

chill

ers

wate

r an

d o

ther

med

ia c

onsu

mpti

on

INDUSTRY 1 1 3 3 1 3 1 1 1 1 1

PUBLIC SECTOR

1 1 1 1 2 1 2 2 2 1 1 1 1

SERVICESECTOR

1 1 1 1 1 2 3 1 1 2 1

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Efficiency of electricity Efficiency of electricity consumptionconsumption

Electromotor facilities – largest energy consumers in industry

Potential in energy efficiency motors (EEM) and variable speed drivers (VSD)

Combined application of EEM and VSD implies 10% economic savings, and more then 15% in energy savings

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Efficiency of heatEfficiency of heatconsumptionconsumption

Similar share of high- and low-temperature consumption in industry

Low-temperature mainly in non-metal, chemistry, and food processing

Big potential in reuse of waste heat, and implementation of efficient technologies

High-temperature heat mainly in construction materials, paper, non-metal and chemical industry

Potential in BAT implementation, and increasing fuel efficiency

In steam consumption-usualy no recovery of condensate, or reuse of waste heat

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Cogeneration in industryCogeneration in industry

simultaneous production of electricity and heat

best locations are already available combustion facilities in industry

reconstruction needed for existing cogeneration plants

old boiler facilities should be modernized

potential in whole industry; specifically chemical, construction, meat procesing, pharmaceutical, wood procesing, textile, tobacco, paper, alcohol, beer, oil, etc.

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Energy eficiencyEnergy eficiencyin small and medium size enterprizesin small and medium size enterprizes

Training ProgramTraining Program

Donor: Donor:

Ministry of Environment and Territory, ItalyMinistry of Environment and Territory, Italythrough Italian Trust Fund (ITF), Januarythrough Italian Trust Fund (ITF), January 20042004

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BackgroundBackground•General: continuous increase in energy consumption in Croatia, paralel to the obligation of reducing the greenhouse gas emissions according to Kyoto protocol

•Specific: REC projects related to industry showed low priority for implementing energy efficiency measures

•PROHES (Program od Development and Organization of Croatian Energy Sector)

•MIEE (The Netwok of Industrial Energy Efficiency)

•Expert study in energy efficiency (FER – Faculty of Electrical Engineering and Computing, Norwegian Partners, EIHP – Energy Institute Hrvoje Pozar)

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Project ObjectivesProject Objectives Building capacity of SMEs for planning and

implementation of energy efficiency measures through interactive training activities

Presentation of technical, economical and financial feasibility of energy efficiency measures through identified case studies in SMEs

Promotion of energy efficiency and dissemination of project results in Croatia and abroad

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FrameworkFramework

REC - project manager Italian Partner: International Solar Energy

Society (ISES)/Pisa University Local Partners (Croatian Chamber of

Commerce, Energy Institute Hrvoje Pozar, Faculty of Electrical Engineering and Computing)

Beneficiaries: SMEs (up to 250 employees) Industry sectors: chemical, construction, food

processing, pharmaceutical, wood procesing, metal and plastic

Project duration: 1,5 year (January 2004-May 2005)

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ActivitiesActivities Short fact-finding mission in SMEs re. energy

management

Promotional half-day seminar

Interactive training (2 workshops+2 site-visits to companies); development of case studies

Review of financing possibilities for EE measures in Croatia

Presentation of project results

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OutcomesOutcomes Review of current energy management practices in

SMEs

Case studies developed in 8 companies

Pilot testing for training methodology

Increased capacity of local trainers for future educational activites

Increased capacity of SME employees for planning and implementation of energy efficiency measures

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Energy efficiency measuresEnergy efficiency measures

Human resources and implementation of energy mgmt. system

Knowledge on current energy consumption and benchmarking

Employees education (new technologies, , maintenance, new legislation, environmental fees)

Improvement of maintenance system Replacement of old and insufficient

technologies, fuel replacement

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...technical solutions...technical solutions

ELECTRICITY AND HEAT improving heating system improving lighting improving compressed air system peak-load mgmt.

ALTERNATIVE ENERGY renewable energy resources fuel replacement (especially in wood processing)

WATER development of modern water mgmt. system

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Case study - Wood industryCase study - Wood industryCroatiaCroatia

Basic data:

Joint venture for wood processing and construction materials.

Main product – massive parquet115 employees.private (100% small shareholders).1998 energy audit performedhard copy – data for electric energy and water acc. on a

monthly basis, and compared with the previous periodmotivation for EE measures

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Basic data – already implemented measures:Time delay in various processing lines for peak load

decrease.Heat from 1980 from waste woodPart of the steaming process is indirectImplemented frequency controllers in new drying chambersIn 2004. unproductive electric energy costs ~1.700 €,

problem solved after three monthsMore then 3.000.000 EUR invested through subsidized

loans


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51%

40%

9%

1

2

3

biomasselectricityfuel oil

Ratio of energy supply

46Energy costs are higher then net profit!!!


8%

10%

82%

waterfuel oil

electricity

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Wood industryWood industry

Fields for potential savings

Current state

Measures to be applied

Benefits

Improvements in compressed air system

manually operated compressors

Implementation of automatization and PLC monitoring system

Investment: 4.500 EUR

• Savings of losses in idle mood

• Savings: 2.500 EUR/year

• Payback period: 1,8 year

Boiler reconstruction, fuel replacement

Fuel oil produces steam in one of the steaming units

Boiler reconstruction from direct to indirect steaming, fuel oil replacement with wooden leftovers

• Investment: 21.700 EUR

• Savings of about 55.000 l of fuel oil and usage of wooden leftovers



Implementation of water mangement system

Only one water meter at the entrance of the company, old internal water supply network

Monitoring equipment (for water losses)

• Investment: 3.200 EUR

• Savings of about 1.300 m3 water/year



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Wood industryWood industryTotal costs of energy supply 200.000 EUR (including water

and wastewater)

Saving potential EUR

1. compressed air system 2.500

2. lighting 2.300

3. peak load management 2.300

4. water management system 1.800

5. reconstruction of steaming unit 19.800

Total 28.700

Potential for 15% economic savings!

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Measures and benefitsMeasures and benefits integral mgmt. of resources (energy, water, raw

materials!) – cleaner production! reducing energy consumption up to 30% best saving measures return investment in 1-2

years less emissions, pollution and environmental

fees better market position compliance with existing/future legislation

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Implementing partnersImplementing partnersNetworking ensures project success:business sector – SMEs, Croatian

Chamber of Commerceconsulting companiesacademic and scientific institutionsfinancing organisations (HEP ESCO,

Environmental and Energy Efficiency Fund)

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CooperationCooperation

EIHPHRVATSKA

GOSPODARSKA KOMORA

Sektor za industriju

HEP grupaHEP ESCO d.o.o.

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For more informationFor more information

www.indigodev.com/Sustain.html www.indigodev.com/Sustain.html

www.rec.org/REC/Programs/itf/Renewables-efficiency_full.html

http://www.rec.org/REC/Programs/itf/Renewables-efficiency_full.html

http://www.rec.org/REC/Programs/itf/Renewables-efficiency_full.html

Documents

Urban sustainability and energy efficiency in industry