Small and Medium Scale Industries (SMIs) in Asia :
A Study of Selected Technologies and Policy Options
Asian Regional Research Programme in Energy, Environment and
Asian Institute of Technology, Thailand
Small and Medium Scale Industries
(SMIs) in Asia: Energy, Environment
and Climate Interrelations
• 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).
1. Project Objective.
2. Selected industrial sub-sectors.
3. Major research findings.
4. Achievements/impacts of the
1. Project Objective
Promotion of activities to mitigate GHG emission
and other pollution by SMIs
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.
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,
Tea, Ceramic, Desiccated
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
3. Major Research Findings (..cont)
Theme 3: Review, Analysis & Recommendation of Energy and
• No specific energy and environmental policies for SMIs.
• Most of the environmental policies (regulations) are based on end of pipe
• There is no market based strategy.
• Role of financial institutions in promoting E 3ST
- Financial intermediations.
- Financial packages.
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
• Regular Newsletter (hardcopy & Website).
• Publications (Journal, Conference, and other articles).
• Road Map CD.
3. Sector Report : Tea Sector
Highlights of the Report
• Basic production processes are same across the countries, but the degree of
• Energy and environmental audits conducted show low energy efficiency
and use of outdated technologies (Vietnam has the lowest energy
• GHG emission results in two ways: combustion of fossil fuels, and
• 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.
Automated material handling Direct Oil-fired
systems Heater for Withering
Roll Breaking and Drying of Tea
Packaging Energy Efficient Motors
Tea manufacturing Sector Report on Tea
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)
Desiccated Coconut Sector
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
REDUC T ION REDUC T ION
P A STEURIZING
Scr eening and gr ading
Sector Report on Desiccated
P ackaging Coconut
DC production process
Report on Policy
•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.
3. Capacity Mobilization and Strengthening
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.
• 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).
SMI Review Workshop at
Training course on
3. Capacity Mobilization and Strengthening (..contd)
• 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
• Developed common audit methodology and reporting mechanism of
• Researchers enhanced their technical and analytical competence, and
• Fellows from India were able to continue their work to initiate new projects.
3. Capacity Mobilization and Strengthening (..cont)
A SMI network established links the research institutes, industrial
associations, government and NGOs across the five participating countries.
Sri Lanka (CESTT)
(ISB) AIT IA
ECF (Overall project
coordination and TU-ERI
BSMB / DTI
EMB / DENR EMB, DOE
• Exchange of information on technology made possible.
• Facilitated Sri Lankan participants visit to Indian industries.
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 &
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
3. Road Map CD
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.
Road Map CD
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
Options for improvement of SMIs’ energy-environmental status: E3STs, policy
Increased awareness of related actors/beneficiaries about energy-environmental
issues in SMIs.
Capacity of NRIs and national partners strengthened : research and technical
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
Developing a low cost treatment technique for coconut waste water (Sri Lanka).
Acquisition of measuring and monitoring equipment (for emission and ambient air
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
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
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.
Any Questions and