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WHR in MSMEs – Experience from World Bank-SIDBI Project

Development Environergy Services Ltd (DESL), New Delhi

At the

Energy Management Action NetworK (EMAK) Workshop Taj Palace Hotel, New Delhi

25 February 2015

Background

World Bank Project : Financing Energy Efficiency in MSME implemented by SIBDI and BEE

SIDBI is leading an activity where services are provided in 5 clusters to MSME units enhancement of energy efficiency

DESL has had the unique experience of conducting energy assessment studies in over 400 MSME units in the Faridabad cluster • The scope of work included Walk Through Audit, Detailed Energy

Audit and providing Implementation Support to the MSME units

• Detailed Energy Audit were conducted in over 260 MSME units in the mixed Faridabad cluster, which included 10 industrial sectors

• The Waste Heat Recovery system was recommended in mainly the forging, foundry, chemical, textile and die casting units

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Efficiency of Forging Furnaces

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METAL

PNG; 100%

METAL

FLUE GAS; 46%

HYDROGEN COMBUSTION; 12%

OPENING LOSS; 4%

SKIN LOSS; 2%

MOISTURE IN AIR; 2%

UNBURNT CARBON; 0.1%

FURNACE (Existing Efficiency:33%)

27 Deg C

1100 Deg C

Major EE recommendations: Waste Heat Recovery, Excess Air Control, Insulation

Improvement ad Opening Loss reduction

Receptiveness to suggestions

Receptiveness Remarks

Excess Air Control Low High manual interface Lowest cost option - sensing of temperature through PID is the most accepted EPIA

Insulation and Opening Loss

High Part of regular O&M measures

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Operating Parameters of Forging Furnaces

The theoretical maximum possible temperature gain ranges from 230 to

550 C

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Issues Faced while designing a WHR system

Draft is not balanced – Flue gas flow from the chimney is found to be very low in many cases

VIDEO

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Schematic of a WHR System & Economics

Furnace Hood

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Cost of recuperator INR & Effectiveness %

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Technical Barriers

Waste heat sources at a plant are from non-continuous or batch processes

Seasonal operations and low-volume operations reduce the economic benefits of WHR system

Scenarios of added cost and complexity for integrating the WHR system controls with existing process controls

Space limitations and equipment configurations make WHR systems difficult or impossible to site economically

Lack of back-up service network

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Business Barriers

Industries reluctant to make investment that do not increase production and ensure economic survival and / or Perception about likely negative impact on the production

Risk of financing projects dependent on uncertain future fuel prices and variable electricity rates

Resistance to accept new, unproven technology that would potentially jeopardize existing production processes, despite significant potential benefits

Reliability and operability

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Possible Way Forward

Consolidate success from many ongoing MSME focused programs

Large scale proliferation by making available designs/design tools to vendors and manufacturers

Vendor/Manufacturer incentive program for energy efficient design (eg. Rating of products)

A paradigm shift on how MSME owners view investment in furnaces - Life Cycle Costing (eg. Rs/MT)

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About DESL

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Our Parent Company – VEIC VEIC is the Veolia subsidiary for consulting services in the fields of water and wastewater, energy and waste management services. The structure of companies under VEIC is as follows:

VEIC has over 200 employees and offices located in India, UAE, Oman, Saudi Arabia, VietNam, Togo; Cameroon, Gabon, Benin, Kenya, Tanzania and Algeria (excluding Europe).

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Partner Partner

Common Management

49%

51%

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100%

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DESL Milestones (1/2) In a journey of over 15 years DESL has worked in the energy efficiency and renewable energy space all over the world. The service offerings cover the entire range of services including energy audit, energy services performance contract, project management including basic and detailed engineering, procurement, installation and commissioning services for development of energy efficiency and renewable energy projects as well as consulting services on energy policy, regulations and strategy. DESL has estimated that its services have contributed in reducing GHG emission by close to 4 Million Tons CO2 equivalent annually.

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ENERGY EFFICIENCY

Enabled energy saving of approx

200 MW in commercial buildings,

industries and municipal facilities

Designed and Engineered over

500 MW of biomass based

power plants and cogeneration

WTE Designed and

engineered 22 MW solid waste to energy plant

SHP Due Diligence &

Project development for

250 MW of hydropower

SOLAR 400,000 LPD solar water heating in

industrial processes

Distributed SPV systems

DESL Milestones (2/2) DESL is today a globally recognized energy consulting company having worked for many prestigious assignments for Multi & Bilateral organizations such as World Bank, ADB, UNDP, UNEP, UNIDO, USAID, GIZ, and DFID amongst many others.

Projects Executed in USA, Spain, France, Algeria , Kenya Sudan, Ivory Coast , South Africa, Jordan, Egypt, UAE, Tajikistan, Nepal, Bangladesh, Pakistan, Vietnam, China, Mongolia, Japan, Singapore

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Thank you

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Acknowledgement: Small Industries Development Bank of India

Contact Information: 011-40791100

srikantkasturi@deslenergy.com