INDUSTRIAL ENERGY CONSUMPTION

IN PAKISTAN BY

Aadil Naveed 2013(Fall)-MBA E-004Ahsan Naeem 2013(Fall)-MBA E-016Bilal Tariq 2013(Fall)-MBA E-003Hur Waffa 2013(Fall)-MBA E-018Ali Zubair 2013(Fall)-MBA E-019

RFO IS EXPENSIVE THAN GAS

ENERGY MIX

FUTURE HORIZON

PAKISTAN ENERGY SECTOR CONSUMPTION AND SUPPLY

ELECTRICITY GENERATION BY COMPANIES

BREAKUP OF INSTALLED GENERATION CAPACITY (JUNE 2012)

INDUSTRIAL SECTOR

INDUSTRIAL SECTOR

• Industrial sector in Pakistan accounts for 19% of the GDP in FY 2008

• This makes it the second largest contributor to economy after agriculture.

• This presentation provides an overview of the energy demand in different industrial sector

• And summarizes with the energy saving potential in different sector and appliances.

ENERGY CONSUMPTION BY SECTOR

ENERGY CONSUMPTION BY INDUSTRIAL SUBSECTOR

FUEL-WISE ENERGY CONSUMPTION IN INDUTRIAL SECTOR

FUEL-WISE ENERGY CONSUMPTION (%) IN INDUTRIAL SUB-SECTOR

FUEL-WISE ENERGY CONSUMPTION (TOE) IN INDUTRIAL SUB-SECTOR

CEMENT INDUSTRY

CEMENT INDUSTRY

• There are 29 cement units in Pakistan and majority of them are located in Sindh and KPK

• The installed capacity was 37 million tonnes per annum in 2008 and was expected to reach 49 million tonnes in 2011

• Total cement production in FY2008 was 25,900 thousand tonnes resulting into an average plant utilization factor of 70%

CEMENT INDUSTRY

• Cement production in the country includes:

(i) Ordinary Portland Cement (OPC)(ii) Sulphate Resisting Cement (SRC)(iii) Blast Furnace Slag Cement (BFSC)(iv) White Cement

CEMENT INDUTRY

• The cement industry in Pakistan mainly uses the following 3 types of cement production techniques

(i) Wet process (ii) Dry process with single stage preheating (iii) Dry process with multi stage preheatingThe dry process with multi stage preheating is the

energy efficient, with the least energy requirements per tonne of cement produced

ENERGY CONSUMPTION

Coal86 %

Gas14 %

CoalGas

Industrial Energy Consumption: 4.20 MTOE

BRICK KILNS

BRICK KILNS

• There are about 10,000 brick kilns operating in the country, mostly in Punjab and KPK, with an average monthly brick production capacity of 650,000 bricks per kiln

• Brick making in Pakistan is an energy intensive activity, with coal being the only fuel used in the process

• The brick kiln industry accounts for 37.2% of the total coal consumption of the country

BRICK KILNS

• Bull Trench and clamp are the only technologies being used for brick making in the country of the total installed capacity, 95% of the brick kilns are Bull Trench type, while the rest are Clamp type

• However, Vertical Shaft Brick Kiln does not yet have a significant market share, and needs to be promoted on a commercial basis

• This technology has recently been introduced in Pakistan as a successful pilot project.

ENERGY CONSUMPTION

• Vertical Shaft Brick Kiln technology offer a much higher level of efficiency and is being used extensively in China and India.

ENERGY CONSUMPTION

Coal100%

Industrial Energy Consumption: 1.68 MTOE

Coal

TEXTILE INDUSTRY

TEXTILE INDUSTRY

• Pakistan is the world’s 4th largest producer of cotton and 3rd largest consumer.

• Cotton-based textile contribute over 60% to the country’s total merchandise consumer.

• The main products of the textile industry include cotton yarn, cotton cloth, garments, cotton products hosiery, blended and synthetic cloth.

• At present, 521 mills are operating in the country, the majority of which are located in the provinces of Sindh and Punjab.

The installed equipment includes

Spindles 12 millions

Shuttle less looms 24,000

Air-jet looms 6,000

Auto-power looms 300,000

Knitting machines 18,000

Fabric processing capacity 4.6 billion sq. meters

Stitching machines 450,000

ENERGY CONSUMPTION IN TEXTILE• The textile industry accounts for a of 17% share in

total industrial energy consumption, utilizing electricity and natural gas as its main energy sources

• Of the total energy consumption of the sector, 82% is in the form of natural gas and 16% is electricity supplied by public utilities.

• The remaining 2% is oil, which is utilized as a backup energy source to natural gas.

• 70% of the total electricity requirement of the textile sector is met by natural gas-based captive generation, and the remaining is supplied by the power utilities WAPDA and KESC.

ENERGY CONSUMPTION IN TEXTILE SECTOR

IRON AND STEEL INDUSTRY

IRON AND STEEL INDUSTRY

• The Iron and Steel industry in Pakistan consists of 650 steel mills of different sizes

• The total production per year is 4.6 million tonnes

• The demand for Iron and steel products is 5 million tonnes

• Pakistan steel mills in the public sector accounts for 1.1 million tonnes

ENERGY CONSUMPTION

Gas48%Oil

19%

Electricity33%

Total Energy Consumption: 1 MTOE

GasOilElectricity

FERTILIZER INDUSTRY

FERTILIZER INDUSTRY

• There are six fertilizer manufacturing companies in Pakistan

• The annual production of fertilizers, including urea and phosphate, both by public and private sector was 6.24 million tonnes in 2007

• Of the total fertilizer production, the output of urea in that year was 4.92 million tonnes and diammonium phosphate (DAP) produced was 0.36 millions tonnes.

ENERGY CONSUMPTION

Gas100%

Total Energy Consumption: 0.84 MTOE

Gas

SUGAR INDUSTRY

SUGAR INDUSTRY

• Pakistan ranks fifth in the world in terms of area under the sugar cane cultivation, eleventh by production and sixtieth in yield

• The sugar industry of Pakistan is the second largest agro based industry in the comprising of 79 sugar mills

• The annual crushing capacity is over 6 million tonnes.• As sugarcane can't be transported over long distances so the

sugar industries is located in Punjab and Sindh where sugarcane is cultivated

• Sugarcane farming and sugar manufacturing contribute significantly to the national exchequer in the form of various taxes and levies

SUGAR INDUSTRY

• Sugar production is a seasonal activity, due to which sugar mills operate on average for four months a year, Bagasse production is 29% by weight of the total sugar cane crushed, of which70% is utilized as fuel in boilers

• The rest is sold to other industries, such as pulp paper and board manufacturers as raw material

ENERGY CONUMPTION

• The sugar industry has a share of 2% in the total commercial energy consumed by the industrial sector in Pakistan

• It utilizes natural gas as its main energy source of the total energy consumption of the industry

• 73% is in the form of natural gas and 5% is electricity supplied by public utilities, while the remaining 22% is fueled by oil

ENERGY CONSUMPTION IN SUGAR INDUSTRY

PAPER INDUSTRY

PAPER INDUSTRY

• The production of paper products in Pakistan is based mainly on local grass and wheat straw

• It constitutes about 46% of the basic raw materials used for this purpose, followed by waste paper at 29%

• About 10% of the input consists of imported pulp, which is used for the production of specialty grade products

• Other raw materials used are bagasse, rice straw, and cotton linter

PAPER INDUSTRY

• The Pakistani pulp and paper industry consists of over 44 manufacturing units of various products and capacities, ranging from 20 to 120 tonnes per day

• The paper industry in Pakistan is mainly located in the provinces of Punjab and KPK

• The paper industry has a share of 7% in total industrial energy consumption in Pakistan

ENERGY CONSUMPTION

• It consists mainly of electricity and natural gas in terms of inputs of the total energy consumption by the sector

• 92% is in the form of natural gas, 4% is electricity, and 4% is oil-fueled

• This energy is consumed in the following processes:

1.Pulping 2.Bleaching 3.Rolling

ENERGY CONSUMPION

• Pulping involves the thermo-mechanical conversion of wood chips into pulp, and is therefore the most energy-intensive of these processes

• However, specific energy consumption per tonne of paper produced varies with the quality of paper being manufactured

• Therefore, the end-use of energy by process varies with the product quality

• With the exception of a few large paper producers, the industry does not utilize energy efficient technologies, such as cogeneration and energy recovery from waste streams.

ENERGY CONSUMPTION IN PAPER INDUSTRY

OTHER INDUSTRY

OTHER INDUSTRY

• This category comprises of the following main industrial subsectors:

i. Chemicalsii. Leather iii. Food and beveragesiv. Other general small-and medium-sized

industry

ENERGY CONSUMPTION

• Other industry has a share of around 29% in the total industrial energy consumption, utilizing natural gas and electricity as its main energy sources

• Natural gas and electricity account for 63% and 22%, respectively of energy consumption by these industries.

• The remaining 15% is accounted for by oil, which is utilized as a backup fuel for natural gas

ENERGY CONSUMPTION IN OTHER INDUSTRY

ENERGY CONSERVATION

ENERGY CONSERVATION

• Energy conservation refers to reducing energy through using less of an energy service

• Energy conservation differs from efficient energy use, which refers to using less energy for a constant service

• Driving less is an example of energy conservation• Driving the same amount with a higher mileage

vehicle is an example of energy efficiency

ENERGY EFFECIENCY

• There is a scope for both in Pakistan, energy efficiency and energy conservation

• The processes used in our industry are obsolete and inefficient

• So there a huge room for improvement by using the latest technologies available and replacing the old equipments with new ones

• The majority of loads (69 %) in the industry are motors and a huge saving potential is there

ENERGY SAVING• New advancement in the technology has resulted

into an advanced series of efficient motors• Things as simple as the design of a building can save

you large amounts of energy• The IE1, IE2, IE3 and now IE4 motors whose

efficiency jumps up to 94% when operated at optimum load

• The use of VFDs can conserve a huge amount of energy (up to 15%) by running the motors at required load rather than the full load

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