energy management @ itc limited, munger award... · i t c l i m i t e d let’s put india first itc...

I T C L I M I T E D

Let’s Put India First ITC LimitedCitizenFirst

Energy Management @ ITC Limited, MungerPresentation for

CII –Excellence in Energy Management 2010ITC Ltd. Munger EnconTeamRamesh Kumar HimanshuBalkrishna Arora

Enduring ValueFor the Nation. For the Shareholder.

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The ITC Profile

Focus on Triple Bottom Line (Sustainability Report 2009):

ØFinancial Performance:ØMarket Capitalization: Over US $ 18 billionØTurnover: Over US $ 5 billion

ØEnvironmental performance:ØWater Positive seven years in a row.Ø Carbon positive four years in a row. Ø Solid waste recycling positive for one year.

Ø Social Performance: Corporate Social Responsibility Initiatives Ø Livelihoods for over 5 million people.Ø e- Choupal initiatives benefiting over 4 million farmers.Ø Social & farm forestry, watershed development.Ø Community development through women’s empowerment, education.

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Primary ManufacturingILTD, Leaf

Cut Tobacco- Semi Finished product

Smoking Mixture

Secondary Manufacturing

Printing Factory, WMS Supplier

Branded Cigarettes

ITC Munger- 102 years journey

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Energy Conservation @ ITC Munger

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MissionMission Statement

We are committed to the international endeavor to mitigate the ill effects of global warming and to reduce consumption of fossil fuels through strategies to minimize / climate any adverse effects on the climate that may be caused by GHG emissions from our operations.

The strategies include:• Conserving energy through audit, benchmarking and use of “Next” practices to achieve the lowest specific Energy consumption (energy required per unit of production)• Using renewable sources of energy• Creating a positive environmental footprint through forestry initiatives that enable carbon dioxide sequestration.

ITC Munger’s Top Management has defined its policy on Energy Conservation, in alignment with the Corporate Policy on Environment, Health & Safety (EHS).

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Energy PolicyEnergy Policy:

ITC Limited, India Tobacco Division, Munger is committed to conserve Energy judiciously in all our activities, operations, products and services across departments.

In particular, the unit:· Closely monitor and control the energy consumption by utilizing effective energy management systems · Explore, Innovate & Implement ideas in the area of recovery of waste energy · Instill a sense of duty in every employee towards energy conservation· Select and adopt cleaner and energy efficient technologies for all its projects · Carry out regular internal and external audits to identify areas for improvement· Incorporate energy conservation target as a part of its annual business plan· Enhance utilization of renewable energy resources, wherever feasible. · Strive for improvement in specific energy consumption through superior quality and productivity . Comply with all statutory requirements, regulations and Corporate EHS Policy

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Energy Management Profile

u

Branch Manager

Production Manager Branch Engineer EHS Manager

I/C PMD I/C SMD Process Manger

Staff & Workmen Staff & Workmen Staff & Workmen Staff & Workmen

Organizational Structure of Energy Management

M U N G E R Citizen First

M U N G E R

Citizen First

Branch Manager

Production Manager Branch Engineer EHS Manager

I/C PMD I/C SMD Utility Engineer cum Energy Manager

Electronics specialist

Staff & Workmen Staff & Workmen Staff & Workmen Staff & Workmen

Organizational Structure of Energy Management

M U N G E R Citizen First

M U N G E R

Citizen First

Project Engineers

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Energy Management Approach

Vision, Mission andCore Values

Energy Policy

Energy Guidelines, Standards and Next

Practices

Implementation, Performance, Measurement, Certifications

Self-Assessment internal Energy Audit & External Audit

Operating Results

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Performance Index

Benchmark & Trend Setting

Benchmark Energy Index : 11.12 GJ/Millon of cigarettes*

* BAT’s Social Report 2009

** ITC Social Report 2009

Energy Index : 5.77 GJ/Millon of cigarettes**

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*2010-11 Outlook

Specific Electrical Energy Trend

•Technology Induction for improved quality•Development of Lean Period Management working practices

•Impact of reduction in Cigarette volumes has been reduced by ITC Munger’s energy conservation drive

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Specific Electrical Energy Comparison

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Boiler - Steam to Fuel ratio ( EVR)

*2010-11 Outlook

• Continous Improvement

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Power factor

Installation of capacitor banks and automation of capacitor controls

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Sl No Title of Energy Saving project implemented

Year

Annual Electrical Savings achieved

Annual thermal savings

Annual

Saving

Invest. Made

Payback months

Units RsLacs

FO ( kL) RsLacs

Rs Lacs Rs Lacs

1 Energy Efficient Luminaries for the entire plant.

’08-‘09 75000 3.5 3.5 1.5 6

2 AHU Fan's Speed optimization in SMD in Block 3

’08-‘09 69000 3.2 3.2 0.3 2

3 CDRF optimization in SMD after partial loading of Block 3 and with full loading Block 1 and 2

’08-‘09 194223 9.1 9.1 0.1 1

4 Temperature and RH optimization in Secondary Blocks

’08-‘09 140034 6.7 6.7 0.1 1

5 VFD for CDRF fan in PMD ’08-‘09 17121 0.8 0.8 0.1 2

6 Time switch for Canteen kitchen exhaust fan

’08-‘09 12721 0.5 0.5 0.1 3

7 ETP - CFM optimization in aeration tank

’08-‘09 1123 0.08 0.08 0.1 15

Encon Project 2008-09

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SlNo

Title of Energy Saving project implemented

Year



Annual

Saving

Invest.

Made

Payback months

Units RsLacs

FO ( kL)

RsLacs

RsLacs

RsLacs

1 AHU 1 & 2 with energy efficient fans and motors (Selection of Pumps and motors based on head and flow requirement of chiller plant)

’09-‘10 84437 3.9 2 9.55 29

2 1.1 TPH Boiler for Non PMD running hours to cater PPD hours

’09-‘10 31.2 9.36 9.36 37 47

3 Waste Heat Recovery from Exhaust Flue Gases from Boiler through Economizer

’09-‘10 35.3 10.59 10.59 3 4

4 AHU Fan's Speed optimization in SMD in Block 1 / By passing of Cooling Coil and Air Washer System

’09-‘10 15797 0.72 0.72 0.3 6

5 Installation and commissioning of VFD panel for one of the Vacuum pump in secondary block 1

’09-‘10 24300 1.1 1.1 0.2 2

6 Switch off the discharge section equipments during follow on interlock both in lamina and stem C&D section in PMD

’09-‘10 19100 0.9 0.1 0.01 1

7 By passing of cooling coil and air washer system in AHU No. 3

’09-‘10 15797 0.72 0.72 0.2 4

8 Automation of Lighting at PMD and SMD ’09-‘10 131664 5.92 5.92 1.0 2

9 Follow on Logic for stem and Lamina Line, Tipper automation

’09-‘10 6200 0.3 0.3 0.01 1


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Sl No Title of Energy Saving project implemented

Year



Annual

Saving

Invest. Made

Payback months

Units RsLacs

FO ( kL)

RsLacs

Rs Lacs RsLacs

1 Fuel Efficient Burner for Boiler

2010-11 8848 0.39 48.4 14.99 15.38 26 20

2 Solar Steam 2010-11 4.5 1.4 1.4 21 180

3 Interlocking of AC power with light circuit in offices.

2010-11 6000 0.27 0.27 0.12 6

4 Optimizing the SMD compressor performance by installing control networking and balancing the loading /unloading cycles to reduce power consumption.

2010-11 30000 1.35 1.35 0.95 9

5 Reduction in steam losses by installation of GEM steam traps

2010-11 5.7 1.78 1.78 0.58 4

6 Thermo compressor for flash steam recovery

2010-11 30.16 9.35 9.35 4.03 5


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Sustainability – Review & Monitoring

Daily

ü Daily Energy Report ü Daily FO & Steam Report ü Daily Water Report ü Daily Effluent Report

Monthly

ü Monthly energy report.ü Energy Cost Analysis Report ü Energy monthly performance reportü Monthly EHS report

Yearly

ü Energy Estimation for the coming yearü Energy variance analysis reportü Annual operating plan for ENCON activityü Review of energy audit by external auditorü Review of ENCON activities

Beyond Equipment Performance….

ü Performance appraisal of Managers

Energy Monitoring station

Discussion Forum

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Sustainability – People Involvement

• Awareness campaign – Posters & slogans.

• Suggestions to implementation schemes.

• Lean and six sigma methodologies.

• Management programs.

• Energy targets are linked with individual KRAs.

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Innovation to Implementation to Imitation (I3I)

Phase 1 (Idea Generation) - This year, the 150 ideas generated in total, out of which best 37 were short listed based upon the results.Phase 2 (Idea Implementation) – 22 projects got fully implementedPhase 3 (Sustenance) – Each implemented project was put under an observation period of 3 months for sustenance

I3I is the initiative to showcase the Innovations at a central platform and then replicate them across units for enhancement of Quality or Productivity or Waste minimization or EHS

Phase 1 (Idea Generation) - This year, the 338 ideas generated in total, out of which best 81 were short listed basedupon the results.Phase 2 (Idea Implementation) – going on

2009 2010

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Case Study 1Waste Heat Recovery System

Challenges :

ØNeed of low cost solution

ØManufacturing of customized solution

ØLarger response time (30 sec) of the motorized valve

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Case Study - 1

11.23

12.16

13.1

10.5

11

11.5

12

12.5

13

13.5

'07 - '08 '08 - '09 '09-'10

'07 - '08 '08 - '09 '09-'10

Steam to Fuel Ratio

Savings on account of Project (Comparision vis a vis before and after project)

September October November AveragePlanned FO in kL with EVR before project 76.1 82.7 92.9

FO consumed in kL.69.6 73.9 84.0 76.2

Savings of FO in KL for Month 6.6 8.8 8.9Savings in Rupees Lacs. 1.9 2.6 2.6 6.8

Performance report of Project "Waste Heat Recovery" for Sep-Nov 09

Performance results

229.5 ton annual CO2

emission reduction

Annual Thermal Saving 79.8 KL of Furnace Oil due to waste heat recovery systemof Boiler through economizer

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Case Study - 2Reduction in Lighting Load- Induction Lights

Benefits:

Ø 45 % reduction in consumption

ØLonger life

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Case Study - 3

Tobacco

Steam

ExpandedTobacco

RO WaterTank

Boiler Feed Water

Tank

25oC2 m3/Hr.

70oC

HE2 m3/Hr.


emission reduction

Annual FO Saving 45 KL

Exhaust Steam Heat Recovery

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Challenges :

Ø Contaminated with Dust

Ø Bigger Dust Particle

Ø Very Low Pressure

Ø 1/3 rd Air in Steam by Volume

Tobacco

Tobacco

Steam Tube

Exhaust Steam Heat Recovery Case Study - 3

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Case Study - 4

Key Benefits :-• Lower run hours of DG set and hence lower consumption of fossil fuel.•Minimization of energy consumption due to reduction of planned changeover time.• Improvement in specific energy consumption by reducing process waste


emission reduction

Rotary UPS

Annual HSD Consumption ( Before)

Annual HSD Consumption ( After)

165 kL 117 kL

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Venturi Trap

Efficient Venturi Steam Traps

Key Benefits :-•Improved reliability over traps as no moving part•Minimized steam loss , Improvement in specific consumption• Increased life of trap

Technology:-• Condensate release through venturi

Case Study - 5

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INDEX

Page No.

A. VENDOR EVALUATION – 1

SYSTEM AND CERTIFICATION

- Objectives 2

- Benefits 2

- Methodology 3

- Vendor Excellence Criteria 4

- Scoring 7

- Score Definition 8

- Vendor Rating/Re -audits 9

B. VENDOR EVALUATION 10

CRITERIA – CHECKLIST

- Process And Quality Control 11

- Manufacturing Resources 43

- Management Policy 58

- Score Card 87

ITC Limited, MungerThinks GloballyBreaks the barriersDevelops others

•Condensate Recovery System Picture from WMS associate- Class 1

Energy Efficiency through associates

• Vendor Excellence Audit System

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Environmental Performance and Initiatives

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100% recycle and reuse of solid waste

Environmental Performance

Air Emission PerformanceDischarge water Performance

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• Biggest Solar Water Heating System in ITD

• Capacity : 13.5 KLD

54.1 ton annual CO2

emission reduction through renewable

resources in heating

• Solar Steam Generation

• Used for Furnace Oil preheating

Renewable Energy

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•1500 LPD (Liters Per Day) Capacity Solar Water Heating for canteen

•Solar street lighting

Renewable Energy

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Decreasing trends due to various water conservation initiatives and awareness program

Specific Water consumption

Specific Water Consumption -KL/Mnc

6.00

5.335.02 4.97

4.20

3

4

5

6

2005-06 2006-07 2007-08 2008-09 2009-10

Kl/M

nc

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Aquifer Recharge Contour Trench Online Recharge Pit

Rain Water Harvesting( Residential Colony )

Rain Water Harvesting – Potential saving 20000kL

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RECYCLING OF BACK WASH WATER

Raw watertank Soft

Water

pH – 7.2-7.3TSS – 15-20 ppm

TH – 500-550 ppmTDS – 800-1000 ppm Backwash

Water To ETP

MGF IRF Softener

pH – 7.2-7.3TSS – 40-50 ppm

TH – 500-525 ppmTDS – 900-1000 ppm

Backwash water31 m3/day

Recycling to ExistingRaw water tankBy gravity( TSS <20 mg/l)

MGF IRF

Scheme

Before

After

Water Conservation – Tube Settler

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RO PLANT FOR TREATED EFFLUENT

Water Conservation – ERS Plant

UF

110 m3/dayTreatedeffluenttank

MGF

Note:MGF - Multi grade filterUF - Ultra filtrationRO - Reverse Osmosis

Filter feedpump

Intermediatetank Intermediate

tank

RO module

RejectFor gardening,Toilet flush

Treated water-50 m3/day for Cooling Tower make up

ExistingMGF

Permeate storage

tank

TDS – 1200 ppmTH – 700 ppm

TDS < 2100 ppmCOD < 250 ppmBOD < 75 ppm

TDS < 150 ppmTH < 100 ppm

TDS < 150 ppmTH < 50 ppm

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ITC Munger has collaborated with 5 National Level NGOs with proven expertise in their respective fields

- BAIF for Cattle Breed Development.

- ASEFFA, NABARD for Agriculture, Watershed.

- BASIX ( IGS) for Dairy Development

- SEWA Bharat for Women’s Empowerment.

- Pratham for Primary Education.

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System Certification•ISO ISO 9001 & 14001•OHSAS 18001

CII Eastern Region•CII Eastern region Award for Energy Conservation for Outstanding performance 2009•CII Eastern Region SHE Award for Outstanding performance 2009•CII Eastern Region Productivity Award 2009•CII Eastern Region SHE Award 2008, 2007•CII Eastern region Award for Energy Conservation 2006

CII •CII National Award for Excellence in Water Management 2006,2007,2008•CII - National Award for Innovative project for Energy Efficiency – 2007

BSC•BSC 5 Star Safety & Occupational Health Audit 99.7 %•BSC 5 Star Environment Management Audit 97.56 %

Awards and Recognitions

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The big question : How do we balance ”needs” and ”desires” ?

There is enough for every one’s need but not enough for every one’s greed

Mahatma Gandhi

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ITC Limited, Munger

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energy management @ itc limited, munger award... · i t c l i m i t e d let’s put india first itc...

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