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Project Report for Medium Scale Business

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					    Small and Medium Scale Industries (SMIs) in Asia :
    A Study of Selected Technologies and Policy Options


                            C. Visvanathan
                               S. Kumar




     Asian Regional Research Programme in Energy, Environment and
                          Climate (ARRPEEC)
              Asian Institute of Technology, Thailand
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         Small and Medium Scale Industries
        (SMIs) in Asia: Energy, Environment
             and Climate Interrelations

    Coordination

    • AIT – Asian Institute of Technology, Thailand.

    National Research Institutes

    •   China         : CESTT (Center for Environ. Sound Technology Transfer).
    •   India         : PSG (PSG College of Technology).
    •   Philippines   : ITDI (Industrial Technology Development Institute).
    •   Sri Lanka     : ISB (Industrial Services Bureau).
    •   Vietnam       : NEDCEN (Non-state Economic Development Centre).

2
     Presentation Overview


    1. Project Objective.
    2. Selected industrial sub-sectors.
    3. Major research findings.
    4. Achievements/impacts of the
       project.




3
                      1. Project Objective
     Promotion of activities to mitigate GHG emission
                and other pollution by SMIs

                         Research Themes

    1.   Analysis of production processes, energy use and pollution in
         selected industrial sectors.
    2.   Identify energy efficient and environmentally sound technologies
         and processes (E3ST).
    3.   Review existing policies and develop scenarios for sustainable
         promotion of E3ST.
    4.   Capacity mobilization and enhancement to introduce E3ST in
         selected industrial sectors.


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                2. Selected Industrial Sub-sectors
    • Five industrial sub-sectors were selected across five participating countries.

           Countries                             Industrial Sub-Sectors
           China                          Textile, Foundry, Tea
           India                          Textile, Foundry, Tea, Brick
                                          Desiccated Coconut, Foundry,
           Philippines
                                          Brick, Ceramic
                                          Tea, Ceramic, Desiccated
           Sri Lanka
                                          Coconut, Brick and Tile
         Vietnam                   Tea, Textile, Brick, Ceramic
     Rationale for selection:
                • Energy intensive and/or highly polluting.
                • Commonality across the countries.
5               • Economic importance in the countries.
                  3. Major Research Findings
    Theme 1: Analysis of Energy use and Pollution Load

    •   Impacts are individually small, but collectively high
    •   Low energy efficiency
    •   Policies are not specific to SMI
    •   Lack of information on technologies.


    Theme 2: Identification of E3ST

    •   Lack of awareness and information on E3ST
    •   Lack of technical know-how/capacity to implement E3ST
    •   Access to loan is not easy
    •   Lack of links between E3ST developer and SMI

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             3. Major Research Findings (..cont)

    Theme 3: Review, Analysis & Recommendation of Energy and
             Environmental Policies

    • No specific energy and environmental policies for SMIs.
    • Most of the environmental policies (regulations) are based on end of pipe
      treatment.
    • There is no market based strategy.
    • Role of financial institutions in promoting E 3ST
         - Financial intermediations.
         - Financial packages.




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                          3. Project Outputs

    • Five Sector Reports (Tea, DC, Brick, Foundry, and Textile) illustrating
      production processes, energy use, pollution and E 3ST options :
      Benchmarking/References to be published: Peer Review by Sector Experts.
    • One cross country Policy Report on SMI with policy options to promote E 3STs.
    • Various Capacity Mobilization and Strengthening programs.
    • Identification of E3STs: Technology Fact Sheets (39 nos.) prepared for
      dissemination.
    • Regular Newsletter (hardcopy & Website).
    • Publications (Journal, Conference, and other articles).
    • Road Map CD.




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                3. Sector Report : Tea Sector

     Highlights of the Report
    • Basic production processes are same across the countries, but the degree of
      modernization vary.
    • Energy and environmental audits conducted show low energy efficiency
      and use of outdated technologies (Vietnam has the lowest energy
      efficiency).
    • GHG emission results in two ways: combustion of fossil fuels, and
      electricity use.

     Impacts
    • Serves as a reference giving detailed information on tea sector.
    • Participating countries learned from each other, realized their key
      differences (in energy use and pollution) to address them.
    • E3ST suitable for tea sector were identified.
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                   Green Leaf
                                              Tea Sector
                   Withering




     (Orthodox)                    (CTC)
       Rolling

      Rolling                     Shredding



                                  CTC Cuts


                                              Automated material handling                 Direct Oil-fired
                                                       systems                          Heater for Withering
                  Roll Breaking                                                          and Drying of Tea

                   Screening



                   Fermenting



                     Drying



                   Grading/
                   Packaging                                                          Energy Efficient Motors


                   Made Tea


     Tea manufacturing                                                      Sector Report on Tea

10        process
     3. Sector Report : Desiccated Coconut Sector
  Highlights of the Report
 • Focuses on two countries : Philippines and Sri Lanka.
 • Production process varies a great deal between the two countries:
          - Philippines use continuous mechanized mills.
          - Sri Lanka use mechanized, semi-mechanized and traditional.
 • Audits show drying process consumes about 66% of the total energy used.
 • CO2 is emitted mainly from combustion of fuels (fossil and biomass) to produce heat.
 • Mills using biomass have lower efficiency.
 • Another major source of pollution is the discharge of highly organic (BOD)
   wastewater.




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                                                  Desiccated Coconut Sector
                         Fresh coconut


                           De-husking                                                                                   Burner
                                                                                                                    Gas tube
                     De-shelling / hatcheting



                      P ar ing and Splitting



                     Washing and Inspection



               (Philippines)                (Sri Lanka)



       stabilizing                                BLA NCHING
                                                                 Screening, Grading and      Dome Type Kiln for Coconut
                                                                       Packaging                 Shell Carbonizing
         SIZE                                         SIZE
      REDUC T ION                                  REDUC T ION



     P A STEURIZING




                                 Dr ying



                       Scr eening and gr ading

                                                                                          Sector Report on Desiccated
                               P ackaging                                                 Coconut

                        Desiccated Coconut




     DC production process
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     Report on Policy
                         Highlights
                        •A cross country comparison of national policies
                        on economy, energy and environment: SMI-
                        Energy and Environment.
                        •Most policies across the countries are focused
                        on high energy consuming industries, and little
                        or no consideration is given in the SMI sectors.
                        •Policy options are presented for promotion of
                        E3STs in the five countries.




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          3. Capacity Mobilization and Strengthening
  Activities
 A number of capacity strengthening programs were conducted; key actors
 involved in SMIs took part. The activities include:
      • Trainings by AIT and NRIs.
      • Seminars in participating countries.
      • Workshops at AIT and NRIs.
      • Fellowships at AIT.
  • In total, 13 nos. of trainings were conducted, in which 276 participants took part
  • The trainings covered the areas such as energy and environmental audits,
    environmental management, boiler operation, effluent treatments etc.
      Impacts
     • Personal are trained in energy and environmental auditing (all NRIs).
     • Awareness on environmental management is developed at managerial level
       (India, Sri Lanka).
     • Operational level people were trained on energy efficiency and environmental
       protection (Sri Lanka).
     • Awareness developed for political leaders (Sri Lanka).
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     Capacity Mobilization

              SMI Review Workshop at
                   Coimbatore, India




                                       Training course on
                                       Effective Energy
                                       Management,
                                       Philippines.



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 3. Capacity Mobilization and Strengthening (..contd)
 Fellowships
• 17 fellowships were provided (total of 26 man months) , and each fellow
  studied different industrial sub-sectors and policy.
                    Country         No. of Fellows      Man month
                China                      2                  3
                India                      3                  5
                Philippines                4                  6
                Sri Lanka                  6                  9
                Vietnam                    2                  3
 Impacts
• Developed common audit methodology and reporting mechanism of
  technical data.
• Researchers enhanced their technical and analytical competence, and
  reporting.
• Fellows from India were able to continue their work to initiate new projects.
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     3. Capacity Mobilization and Strengthening (..cont)
        Networking
       A SMI network established links the research institutes, industrial
       associations, government and NGOs across the five participating countries.
                                                                                      ITA,
                                                                                     UPASI

                                                                      SITRA,                      CII
                                                                      SIMA


                                                            CPB/SPB
                                                                                 India             CODISSIA

                                                                                   (PSG)                                      PCC
                                              UOM
                              IATC

                                                                                                                                    Regional

                                                                                                              China                 CESST
                      CEA
                                     Sri Lanka                                                                (CESTT)
                                           (ISB)                                   AIT                                                IA


                        ECF                                                    (Overall project
                                                                               coordination and                         TU-ERI
                                                                                 management)


                                                                                                                        NGO

                                 BSMB / DTI
                                                    Philippines
                                                                                                 Viet Nam
                                                                                                  (NEDCEN)                 CPC

                                     DAP                   (ITDI)
                                                                                         Govt.
                                                                                                                 SMEC
                                                                                                        IER
                                              EMB / DENR        EMB, DOE




        Impacts
       • Exchange of information on technology made possible.
       • Facilitated Sri Lankan participants visit to Indian industries.
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                             3. SMI Newsletter
      Objective: To disseminate information about the SMI project and other
         relevant information on E3ST from other sources
      Target groups : industrial associations, policy makers, financial
         institutions, government departments, NGOs, academic institutions, R &
         D organizations.
      Total No of Issues: 13 (so far) plus a
      Special Issue :    Desiccated coconut
      Website : http://www.serd.ait.ac.th/smi2/smi2.html
         Exit Strategy: PSG (India) has now taken over the publishing task of SMI
         Newsletter.




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                         SMI Newsletters




     http://www.serd.ait.ac.th/smi2/smi2.html
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                               3. Road Map CD
      Objective :
     To provide a comprehensive information about outputs of the SMI project
     (Reports, Publications, TFSs, Success Stories, Web sites, etc.) in a most
     convenient format for wider dissemination.

      The CD contains:
             •   Information about the SMI project.
             •   Sector reports (Tea, DC, Brick, Foundry and Textile).
             •   Policy report.
             •   Technology Fact Sheets (E3ST).
             •   All publications (journal papers, articles).
             •   SMI Newsletters.
             •   Success Stories.
             •   Web links.




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     Road Map CD




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        4. Achievements/Impacts of the SMI Project
 Establishment of specific energy consumption and pollution loads of selected
 industrial sub sectors.
 Data/Information on energy-environmental issues related to SMIs of the studied
 sectors.
 Options for improvement of SMIs’ energy-environmental status: E3STs, policy
 options.
 Increased awareness of related actors/beneficiaries about energy-environmental
 issues in SMIs.
 Capacity of NRIs and national partners strengthened : research and technical
 capacity.
 Capacity of SMIs strengthened : energy-environmental Audit / management skills.
 Networking established: cooperation and information exchange among partners in
 each country and among participating countries.
 Developing a technology for environmentally friendly coconut shell carbonization
 (Sri Lanka).
 Developing a low cost treatment technique for coconut waste water (Sri Lanka).
 Acquisition of measuring and monitoring equipment (for emission and ambient air
 quality).
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      4. Achievements/Impacts of the SMI Project
 Improved recognition by State, Private sector and international development
  agencies (ADB funded Cleaner Production and USAID funded ESCO
  development projects) as a major player in energy and environmental matters.
 Creation of wider business interests focused on the field on energy and
  environment.
 SL:Participating in national steering committees on CP and CDM.
 SL: Entrusting the task of writing the chapter on “Environmentally Sound
  Technology Transfer for Sustainable Development” for the national report for
  Rio+10 world summit.
 NRI (Sri Lanka) is selected as a partner organization under State of Arizona
  (USA) Environmental Partnership Programme under USAEP.
 Off-shoot project in Vietnam: improvement of withering trough in tea
  processing.
 Offshoot of this project in India: PSG (Indian NRIs) has started a masters and
  PhD programme in energy engineering and its energy audit team has got
  Government approval to carry out energy audit and certify the SMIs.
 PSG (Indian NRI) has established contacts with Centre for Environmental
  Education, which is collaborating with UNIDO in Tirupur and USAID project
  on “Reduction of GHG Potential of Knitwear Industry at Tirupur” coordinated
23by Ecosmart India.
         Thank You.

 Any Questions and
 Comments ……

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